For those whose St Ives flat is held on a long lease, our message is clear – if you do nothing, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in St Ives,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Ives valuers.
Last Christmas Austin, started to get close to the 80-year mark with the lease on his ground floor apartment in St Ives. In buying his flat 18 years ago, the length of the lease was of little interest. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Austin arranged for a lease extension at the eleventh hour in March. Austin and the freeholder via the management company eventually settled on the final figure of £5,500 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £950.
Mr and Mrs. C Michel was assigned a lease of a ground floor apartment in St Ives in July 2009. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative homes in St Ives with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 invoiced per annum. The lease ran out in 2095. Considering the 69 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
Mr and Mrs. G Morris was assigned a lease of a studio apartment in St Ives in April 2000. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical properties in St Ives with an extended lease were in the region of £285,000. The average ground rent payable was £55 invoiced yearly. The lease expired in 2106. Having 80 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.