Chances are that where you own a flat in St Neots you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
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 lawyer we work with provide it.
In the wake of 9 months of lengthy correspondence with the landlord of her leasehold flat in St Neots, Hollie initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The lease extension was finalised in April 2005. The freeholder’s charges were negotiated to under 650 pounds.
In 2014 we were contacted by Mr and Mrs. I Petit who, having took over the lease of a newly refurbished flat in St Neots in October 2005. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical flats in St Neots with a long lease were worth £218,000. The average amount of ground rent was £45 collected per annum. The lease ran out in 2089. Having 63 years remaining we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including expenses.
Last Christmas we were approach by Ms Danielle Lefebvre , who purchased a purpose-built flat in St Neots in June 2002. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative properties in St Neots with a long lease were in the region of £265,000. The average amount of ground rent was £55 invoiced annually. The lease ran out on 21 February 2100. Considering the 74 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.