The only way is down when it comes to St Albans lease terms. St Albans leaseholds that have a remaining term less than than 80 years will reduce in market price at a rapid rate, and the cost to extend your lease will rise.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure St Albans 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.
Subsequent to lengthy correspondence with the freeholder of her purpose-built apartment in St Albans, Holly commenced the lease extension process as the 80 year mark was fast nearing. The lease extension completed in November 2010. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were e-mailed by Dr Bethany Rivera , who acquired a first floor apartment in St Albans in April 1996. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Identical premises in St Albans with a long lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed on 21 May 2078. Taking into account 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including fees.
Last Spring we were e-mailed by Mr and Mrs. G Martinez , who purchased a garden flat in St Albans in May 2012. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Similar homes in St Albans with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2098. Given that there were 72 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of fees.