Unfortunately that a St Neots residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the St Neots property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in St Neots will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Last Christmas Daniel, started to get close to the 80-year mark with the lease on his one bedroom flat in St Neots. In buying his flat two decades ago, the lease term was of little relevance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Daniel extended the lease at the eleventh hour last March. Daniel and the landlord who owned the flat above eventually agreed on sum of £5,000 . If he not met the deadline, the price would have become more exhorbitant by at least £875.
In 2014 we were called by Mr and Mrs. O Jackson who, having moved into a basement apartment in St Neots in September 2011. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in St Neots with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 collected per annum. The lease elapsed on 19 June 2095. Considering the 69 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Dr Muhammad Bertrand took over the lease of a ground floor flat in St Neots in August 1999. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparable properties in St Neots with a long lease were valued about £285,000. The average amount of ground rent was £55 collected every twelve months. The lease end date was in 2106. Considering the 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.