As the the remaining lease term of a St Leonards On Sea residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 125 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in St Leonards On Sea will qualify for this right; that being said a conveyancer should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in St Leonards On Sea with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in St Leonards On Sea,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Leonards On Sea valuers.
Archie owned a high value flat in St Leonards On Sea on the market with a lease of a few days over fifty eight years remaining. Archie informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Archie to invoke his statutory right. Archie obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were called by Mrs T Mason who, having took over the lease of a purpose-built apartment in St Leonards On Sea in October 2002. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable flats in St Leonards On Sea with a long lease were valued around £227,800. The mid-range ground rent payable was £45 invoiced every twelve months. The lease lapsed on 15 September 2090. Given that there were 65 years left we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Dr A Reed completed a newly refurbished apartment in St Leonards On Sea in April 2010. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar residencies in St Leonards On Sea with an extended lease were in the region of £275,000. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish in 2101. Considering the 76 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.