St Neots leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in St Neots will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in St Neots with more than 100 years remaining 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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Engaging our service will provide you increased control over the value of your St Neots leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her ground floor apartment in St Neots, Gemma initiated the lease extension process just as her lease was approaching the all-important eighty-year deadline. The legal work was concluded in February 2007. The landlord’s costs were restricted to under 650 GBP.
In 2010 we were contacted by Dr Jonathan Taylor who, having took over the lease of a newly refurbished apartment in St Neots in March 2009. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative premises in St Neots with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 collected yearly. The lease expired in 2106. Considering the 80 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last Spring we were e-mailed by Mr and Mrs. E Baker , who moved into a first floor flat in St Neots in October 2009. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in St Neots with an extended lease were valued about £200,800. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed in 2086. Given that there were 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus professional charges.