On the balance of probabilities where you own a flat in St Albans you actually own a long leasehold interest over your property
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Lease extensions in St Albans can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring St Albans lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Leon, started to get close to the eighty-year mark with the lease on his purpose- built flat in St Albans. Having bought his flat two decades ago, the unexpired term was of no importance. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Leon extended the lease just under the wire last July. Leon and the freeholder via the managing agents subsequently agreed on an amount of £5,500 . If the lease had dipped lower than 80 years, the sum would have gone up by at least £925.
In 2012 we were e-mailed by Mr and Mrs. G Cooper who, having acquired a garden flat in St Albans in September 2007. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar residencies in St Albans with 100 year plus lease were valued around £213,600. The mid-range ground rent payable was £60 collected quarterly. The lease finished on 3 November 2082. Having 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus expenses.
Mr and Mrs. R Mason bought a garden apartment in St Albans in October 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical homes in St Albans with an extended lease were valued around £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out on 3 March 2102. Given that there were 77 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.