St Neots leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in St Neots will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold premises in St Neots with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in St Neots can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with St Neots lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Caleb owned a 2 bedroom apartment in St Neots being sold with a lease of a few days over fifty eight years unexpired. Caleb on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Dr Kian Díaz owned a garden apartment in St Neots in January 2005. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable properties in St Neots with an extended lease were valued around £210,600. The mid-range ground rent payable was £45 billed per annum. The lease expiry date was on 1 November 2088. Considering the 62 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of expenses.
Last Summer we were contacted by Mr and Mrs. S Thompson , who took over the lease of a one bedroom apartment in St Neots in May 1995. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable homes in St Neots with a long lease were valued around £265,000. The mid-range ground rent payable was £50 collected monthly. The lease termination date was on 4 August 2099. Given that there were 73 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.