Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in St Andrews. Inevitably, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in St Andrews have the right to extend the lease for a further ninety years in accordance with legislation. You should give careful attention before putting off your St Andrews lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
Leasehold properties in St Andrews with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in St Andrews,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Andrews valuers.
In the wake of 6 months of unsuccessful discussions with the freeholder of her basement apartment in St Andrews, Chloe initiated the lease extension process as the eighty year mark was fast advancing. The lease extension was concluded in January 2010. The landlord’s charges were negotiated to slightly above 450 pounds.
Last month we were approach by Dr Erin David , who completed a one bedroom flat in St Andrews in April 2005. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparable premises in St Andrews with a long lease were worth £255,000. The average amount of ground rent was £50 billed yearly. The lease ended on 28 October 2096. Having 70 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 not including costs.
In 2014 we were approached by Dr Isaac Díaz who, having moved into a purpose-built flat in St Andrews in April 2003. The question was if we could approximate the price could be for a 90 year lease extension. Comparable homes in St Andrews with a long lease were valued about £246,800. The mid-range ground rent payable was £60 collected yearly. The lease came to a finish on 21 March 2076. Given that there were 50 years unexpired we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus professional charges.