The nearer a residential lease in St Annes Park nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in St Annes Park will qualify for this right; nevertheless a conveyancing solicitor can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in St Annes Park with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Irrespective of whether you are a tenant or a landlord in St Annes Park,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Annes Park valuers.
Following protracted correspondence with the freeholder of her two bedroom flat in St Annes Park, Yasmin started the lease extension process just as the lease was coming close to the critical 80-year deadline. The lease extension was finalised in March 2014. The landlord’s fees were negotiated to a tad over 500 pounds.
Last Christmas we were contacted by Mr and Mrs. N Wood , who acquired a garden flat in St Annes Park in May 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in St Annes Park with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 collected every twelve months. The lease lapsed on 10 March 2083. Having 57 years left we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.
Dr Anna Clark completed a ground floor flat in St Annes Park in July 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Similar residencies in St Annes Park with 100 year plus lease were in the region of £245,000. The average ground rent payable was £50 billed quarterly. The lease concluded in 2094. Considering the 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.