There is no doubt about it a leasehold flat or house in St Andrews is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner rather than later. Many flat owners in St Andrews will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of 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 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your St Andrews leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Mason, came precariously close to the 80-year threshold with the lease on his garden apartment in St Andrews. Having bought his home two decades ago, the lease term was of no concern. Fortunately, he recognised he would imminently be paying an inflated amount for a lease extension. Mason arranged for a lease extension just in the nick of time in September. Mason and the freeholder in the end settled on the final figure of £6,000 . If the lease had dipped to less than eighty years, the price would have increased by at least £1,050.
Mr and Mrs. C Rose was assigned a lease of a recently refurbished flat in St Andrews in October 2004. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in St Andrews with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease terminated on 12 May 2093. Taking into account 68 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
Dr Abbie Bennett completed a ground floor flat in St Andrews in July 2010. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable properties in St Andrews with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease concluded on 7 May 2104. Considering the 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.