With a residential leasehold premises in St Annes Park, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years left. Residents in St Annes Park with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has under 80 years remaining, under the relevant legislation the freeholder can calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 lawyer we work with provide it.
Off the back of lengthy negotiations with the landlord of her studio flat in St Annes Park, Holly initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work was finalised in January 2013. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. B Lee moved into a garden apartment in St Annes Park in September 2005. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative premises in St Annes Park with 100 year plus lease were in the region of £168,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease terminated in 2081. Having 55 years outstanding we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.
Last Autumn we were phoned by Dr Kian Morgan , who completed a studio flat in St Annes Park in April 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in St Annes Park with an extended lease were in the region of £235,200. The average ground rent payable was £45 invoiced per annum. The lease expired on 21 June 2092. Considering the 66 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.