St Agnes leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in St Agnes will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
Retaining our service will provide you enhanced control over the value of your St Agnes leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Luca, started to get near to the eighty-year threshold with the lease on his studio apartment in St Agnes. Having bought his home two decades ago, the length of the lease was of minimal interest. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Luca extended the lease at the eleventh hour in May. Luca and the freeholder eventually agreed on a premium of £5,500 . If the lease had dipped lower than eighty years, the figure would have increased by a minimum £1,150.
In 2013 we were contacted by Mr Thomas Thomas who, having acquired a basement flat in St Agnes in April 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparative homes in St Agnes with an extended lease were in the region of £166,400. The average ground rent payable was £60 billed yearly. The lease terminated on 15 April 2080. Having 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including expenses.
In 2010 we were contacted by Mr Ibrahim Lewis who, having acquired a purpose-built flat in St Agnes in April 1998. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical homes in St Agnes with 100 year plus lease were valued around £227,800. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished on 15 November 2091. Considering the 65 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.