St Agnes leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most St Agnes tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in St Agnes you must check if your lease has between 70 and 90 years left. There are good reasons why a St Agnes flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in St Agnes with more than one hundred years left 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in St Agnes,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Agnes valuers.
Two years ago John, came dangerously near to the eighty-year mark with the lease on his two bedroom apartment in St Agnes. In buying his flat 18 years previously, the unexpired term was of little relevance. Luckily, he became aware that he would imminently be paying an inflated amount for a lease extension. John arranged for a lease extension just in the nick of time in April. John and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he not met the deadline, the figure would have become more exhorbitant by a minimum £875.
In 2013 we were e-mailed by Mr and Mrs. W Adams who, having took over the lease of a one bedroom apartment in St Agnes in September 1998. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical homes in St Agnes with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expired in 2099. Given that there were 73 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last year we were e-mailed by Mr K Thomas , who moved into a purpose-built apartment in St Agnes in June 2000. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative properties in St Agnes with a long lease were worth £264,000. The average amount of ground rent was £60 collected annually. The lease concluded in 2079. Given that there were 53 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including legals.