St Neots leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in St Neots will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
Lender | Requirement |
---|---|
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. |
Halifax | Minimum 70 years from the date of the mortgage. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her basement flat in St Neots, Rachael started the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension completed in October 2005. The freeholder’s costs were kept to an absolute minimum.
Last year we were contacted by Mr and Mrs. E Ali , who acquired a purpose-built flat in St Neots in November 2008. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable properties in St Neots with an extended lease were valued around £264,000. The average ground rent payable was £60 invoiced per annum. The lease came to a finish in 2077. Considering the 53 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 plus expenses.
Mr and Mrs. T Bailey was assigned a lease of a one bedroom apartment in St Neots in August 2002. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparative residencies in St Neots with 100 year plus lease were valued around £225,400. The average amount of ground rent was £45 billed quarterly. The lease ran out on 16 October 2088. Having 64 years remaining we approximated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 not including expenses.