Unfortunately that a St Mawes residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the St Mawes property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in St Mawes will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide you better control over the value of your St Mawes leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jonathan, started to get near to the eighty-year threshold with the lease on his leasehold flat in St Mawes. In buying his home two decades ago, the unexpired term was of minimal interest. Fortunately, he recognised he would imminently be paying way over the odds for Extending the lease. Jonathan extended the lease at the eleventh hour in May. Jonathan and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the sum would have gone up by a minimum £1,075.
In 2010 we were contacted by Dr Stanley Wilson who, having bought a first floor apartment in St Mawes in November 1997. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in St Mawes with 100 year plus lease were valued about £173,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease termination date was on 16 July 2080. Given that there were 55 years left we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.
Dr Charlotte Martínez was assigned a lease of a purpose-built apartment in St Mawes in September 2001. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar premises in St Mawes with a long lease were worth £235,200. The average ground rent payable was £45 invoiced per annum. The lease expired on 10 September 2091. Taking into account 66 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.