When it comes to long leasehold premises in St Luke's, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in St Luke's with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has less than 80 years left, under the current legislation the landlord can calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in St Luke's with in excess of one hundred years left 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your St Luke's leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Harrison was the the leasehold owner of a high value apartment in St Luke's on the market with a lease of fraction over 59 years left. Harrison informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2012 we were called by Mr Seth Garcia who, having bought a one bedroom flat in St Luke's in August 1999. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical premises in St Luke's with an extended lease were worth £237,600. The average amount of ground rent was £45 billed quarterly. The lease came to a finish in 2092. Taking into account 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus expenses.
An example of a Lease Extension matter before the tribunal for a St Luke's property is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case affected 2 flats. The remaining number of years on the lease was 72.39 years.