When it comes to domestic leasehold property in St Andrews, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years left. Anyone in St Andrews with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once a lease has below 80 years left, under the current Act the landlord can calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Chelsea 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. |
| 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. |
The conveyancers that we work with undertake 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.
Alexander owned a conversion apartment in St Andrews on the market with a lease of a few days over 61 years left. Alexander informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Last Christmas we were approach by Ms H Scott , who bought a newly refurbished flat in St Andrews in February 1997. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical flats in St Andrews with an extended lease were in the region of £254,200. The average ground rent payable was £60 collected annually. The lease finished in 2077. Having 51 years unexpired we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 not including legals.
Mr and Mrs. K Flores moved into a studio apartment in St Andrews in February 2001. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative residencies in St Andrews with a long lease were valued around £210,600. The mid-range ground rent payable was £45 collected every twelve months. The lease termination date was in 2088. Taking into account 62 years outstanding we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus fees.