St Neots leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. Leasehold owners in St Neots will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The conveyancers 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.
Jason was the the leasehold owner of a high value apartment in St Neots on the market with a lease of a little over 61 years remaining. Jason informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason obtained expert advice and secured satisfactory deal without going to tribunal and readily saleable.
In 2010 we were phoned by Mrs M Smith who, having owned a recently refurbished apartment in St Neots in September 2001. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable premises in St Neots with 100 year plus lease were in the region of £242,600. The mid-range amount of ground rent was £45 billed quarterly. The lease expired on 15 October 2092. Given that there were 67 years outstanding we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including legals.
Last July we were approach by Ms Poppy Jones , who completed a garden flat in St Neots in May 2007. The question was if we could approximate the price would be to extend the lease by ninety years. Comparative residencies in St Neots with a long lease were valued about £280,000. The average ground rent payable was £55 invoiced per annum. The lease concluded in 2103. Given that there were 78 years left we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.