Unfortunately that a St Neots residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the St Neots property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in St Neots will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in St Neots with in excess of one hundred years remaining on the lease are often referred to as ‘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 freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date 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. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Aarav was the the leasehold proprietor of a studio apartment in St Neots being marketed with a lease of a little over sixty years unexpired. Aarav on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Aarav to invoke his statutory right. Aarav obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Mr A Díaz acquired a ground floor apartment in St Neots in June 2009. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative premises in St Neots with a long lease were worth £166,400. The mid-range ground rent payable was £60 invoiced yearly. The lease terminated in 2080. Taking into account 54 years remaining we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including costs.
In 2010 we were e-mailed by Ms Rebecca Brown who, having was assigned a lease of a basement apartment in St Neots in July 2002. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Identical residencies in St Neots with a long lease were in the region of £227,800. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded in 2091. Given that there were 65 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.