Chances are that where you own a flat in St Annes Park you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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; |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with procure 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.
After unsuccessful discussions with the freeholder of her first floor apartment in St Annes Park, Eleanor initiated the lease extension process as the eighty year deadline was fast coming. The lease extension was finalised in February 2010. The landlord’s costs were restricted to below 500 GBP.
Mr and Mrs. I King moved into a purpose-built flat in St Annes Park in June 2010. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar properties in St Annes Park with 100 year plus lease were worth £256,600. The average ground rent payable was £60 billed quarterly. The lease expired on 4 February 2077. Taking into account 52 years outstanding we estimated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of legals.
In 2010 we were e-mailed by Mr and Mrs. C Clarke who, having bought a ground floor apartment in St Annes Park in June 2006. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable premises in St Annes Park with an extended lease were valued about £218,000. The average ground rent payable was £45 invoiced annually. The lease ran out in 2088. Given that there were 63 years remaining we estimated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus professional charges.