St Andrews leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in St Andrews will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in St Andrews with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with handle St Andrews 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 conveyancing solicitor we work with provide it.
Last Autumn Leon, came very close to the 80-year threshold with the lease on his leasehold apartment in St Andrews. In buying his home two decades ago, the lease term was of minimal importance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Leon extended the lease at the eleventh hour in June. Leon and the freeholder via the management company eventually agreed on a premium of £5,500 . If the lease had gone below 80 years, the figure would have escalated by a minimum £850.
In 2009 we were called by Mr and Mrs. L Miller who, having completed a basement flat in St Andrews in July 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in St Andrews with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease lapsed on 6 June 2081. Having 56 years remaining we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of legals.
Last year we were e-mailed by Mr and Mrs. P Alexander , who was assigned a lease of a ground floor apartment in St Andrews in September 2012. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar homes in St Andrews with a long lease were in the region of £242,600. The average ground rent payable was £45 invoiced annually. The lease finished in 2092. Given that there were 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including professional charges.