It’s a harsh certainty that a St Annes Park residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the St Annes Park property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Most flat owners in St Annes Park will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in St Annes Park with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in St Annes Park,the lease extension experts that we work with will always be prepared 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.
Last year George, started to get close to the eighty-year mark with the lease on his ground floor apartment in St Annes Park. Having bought his property 18 years ago, the length of the lease was of no importance. by good luck, he realised he needed to take steps soon on Extending the lease. George arranged for a lease extension just in the nick of time in July. George and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If he not met the deadline, the sum would have escalated by at least £1,075.
Last Autumn we were approach by Mr and Mrs. H Moreau , who acquired a studio flat in St Annes Park in September 1998. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparative premises in St Annes Park with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 collected per annum. The lease ran out in 2100. Taking into account 74 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Mr and Mrs. G Lewis acquired a first floor flat in St Annes Park in January 2006. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative flats in St Annes Park with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expired in 2080. Taking into account 54 years unexpired we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of costs.