The re-sale value of a leasehold property in St Neots depends on how long the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed prior to the 80 year threshold. Statute enables St Neots qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in St Neots 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers 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 conveyancing solicitor we work with provide it.
Kai owned a studio flat in St Neots on the market with a lease of a little over 61 years unexpired. Kai on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Mrs I Ali was assigned a lease of a recently refurbished apartment in St Neots in October 1996. We are asked if we could estimate the premium could be to extend the lease by 90 years. Similar properties in St Neots with a long lease were worth £208,200. The average ground rent payable was £65 invoiced quarterly. The lease expired on 12 September 2087. Having 61 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus costs.
In 2010 we were contacted by Mr and Mrs. M Díaz who, having was assigned a lease of a one bedroom flat in St Neots in April 2007. The question was if we could approximate the premium would be for a 90 year lease extension. Comparable premises in St Neots with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 collected yearly. The lease lapsed on 11 November 2098. Given that there were 72 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.