St Ives leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in St Ives will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in St Ives with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Nationwide Building Society | |
| TSB | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in St Ives,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Ives valuers.
In 2014 Blake, came perilously near to the eighty-year threshold with the lease on his garden flat in St Ives. Having bought his flat 18 years previously, the lease term was of no bearing. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Blake extended the lease at the eleventh hour in August. Blake and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he had missed the deadline, the figure would have escalated by at least £1,000.
Last month we were phoned by Mr and Mrs. F Stewart , who took over the lease of a first floor apartment in St Ives in January 2011. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable properties in St Ives with 100 year plus lease were valued about £264,000. The average ground rent payable was £60 billed quarterly. The lease ran out on 2 June 2079. Taking into account 53 years remaining we estimated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus professional charges.
Last February we were e-mailed by Mr K Moore , who purchased a first floor flat in St Ives in April 1997. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative homes in St Ives with a long lease were in the region of £220,400. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished on 18 October 2090. Given that there were 64 years unexpired we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including fees.