On the balance of probabilities where you own a flat in St Neots you actually own a long leasehold interest over your property
Leasehold premises in St Neots with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with undertake St Neots lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After unsuccessful correspondence with the landlord of her garden flat in St Neots, Francesca initiated the lease extension process as the eighty year threshold was rapidly advancing. The legal work was concluded in February 2012. The landlord’s costs were negotiated to less than 600 GBP.
In 2013 we were e-mailed by Mr and Mrs. V Díaz who, having was assigned a lease of a purpose-built flat in St Neots in October 2006. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in St Neots with a long lease were valued around £265,000. The mid-range ground rent payable was £55 billed quarterly. The lease lapsed on 20 October 2100. Given that there were 74 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2012 we were phoned by Dr Rosie Young who, having owned a one bedroom flat in St Neots in April 2011. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative residencies in St Neots with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected quarterly. The lease ended on 27 February 2080. Having 54 years remaining we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus professional charges.