As the the remaining lease term of a St Annes Park domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of 99 years to run then this decrease may be of little impact that being said 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 rational as to why you should extend the lease sooner than later. The majority of flat owners in St Annes Park will qualify for this right; nevertheless a lawyer will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in St Annes Park with in excess of 100 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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 conveyancer we work with provide it.
Liam was the the leasehold owner of a 2 bedroom flat in St Annes Park on the market with a lease of fraction over 59 years unexpired. Liam informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Liam to exercise his statutory right. Liam obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
Last Christmas we were called by Mr and Mrs. M Mason , who purchased a basement flat in St Annes Park in October 1996. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative properties in St Annes Park with a long lease were valued about £225,400. The mid-range ground rent payable was £45 billed per annum. The lease ended on 21 January 2089. Given that there were 64 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including professional charges.
Mr and Mrs. T Adams moved into a ground floor apartment in St Annes Park in February 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative premises in St Annes Park with an extended lease were worth £270,000. The average amount of ground rent was £55 collected quarterly. The lease expiry date was in 2100. Having 75 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.