The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in St Neots can extend the lease for an additional ninety years in accordance with statute. Please think carefully before delaying your St Neots lease extension. Putting off that expense today simply escalates the amount you will ultimately have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
The lawyers that we work with procure 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 discussions with the landlord of her ground floor apartment in St Neots, Sophie started the lease extension process as the eighty year threshold was quickly advancing. The lease extension completed in February 2014. The landlord’s costs were kept to an absolute minimum.
In 2014 we were phoned by Mr G Clarke who, having purchased a studio flat in St Neots in August 2002. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in St Neots with a long lease were worth £173,800. The average ground rent payable was £60 invoiced quarterly. The lease came to a finish on 2 March 2081. Considering the 55 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.
Mr and Mrs. S Lefèvre bought a one bedroom flat in St Neots in September 2009. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative premises in St Neots with 100 year plus lease were valued about £235,200. The average ground rent payable was £45 invoiced per annum. The lease concluded on 23 February 2092. Given that there were 66 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.