The market value of St Ives leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is less than eighty years
Leasehold premises in St Ives with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in St Ives,the lease extension experts that we work with will always be prepared 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.
Samuel was the the leasehold owner of a 2 bedroom apartment in St Ives on the market with a lease of a few days over sixty years remaining. Samuel informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Samuel to exercise his statutory right. Samuel procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
Mr and Mrs. P Michel was assigned a lease of a ground floor apartment in St Ives in April 2008. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in St Ives with a long lease were valued around £250,000. The average ground rent payable was £50 invoiced per annum. The lease finished on 3 June 2096. Considering the 70 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.
Last Winter we were contacted by Dr Francesca Mitchell , who acquired a one bedroom flat in St Ives in July 2007. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in St Ives with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced per annum. The lease expiry date was in 2076. Having 50 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 plus professional charges.