There is no doubt about it a leasehold property in St Annes Park is a wasting asset as a result of the shortening lease. If the lease has, beyond 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner rather than later. Many flat owners in St Annes Park will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society |
The conveyancers that we work with undertake St Annes Park 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.
Seth owned a high value apartment in St Annes Park on the market with a lease of fraction over 59 years outstanding. Seth on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Seth to exercise his statutory right. Seth procured expert advice and secured satisfactory resolution informally and sell the property.
Last September we were approach by Dr B Alexander , who moved into a studio apartment in St Annes Park in February 1997. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparative flats in St Annes Park with an extended lease were worth £250,000. The average ground rent payable was £50 billed quarterly. The lease end date was in 2095. Given that there were 69 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Spring we were phoned by Mr Elijah Vincent , who moved into a basement flat in St Annes Park in February 1995. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical premises in St Annes Park with an extended lease were valued about £285,000. The average ground rent payable was £55 billed per annum. The lease concluded in 2106. Considering the 80 years left we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.