As the length of the unexpired term of a St Annes domestic lease lessens so does its value and therefore the value of your property. If the lease has, beyond 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. Most flat owners in St Annes will meet the qualifying criteria; that being said a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in St Annes with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in St Annes,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Annes valuers.
Half a year ago Callum, started to get near to the 80-year threshold with the lease on his garden apartment in St Annes. In buying his flat two decades ago, the length of the lease was of minimal importance. Luckily, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Callum arranged for a lease extension at the eleventh hour last August. Callum and the freeholder eventually settled on a premium of £6,000 . If the lease had slid to less than 80 years, the sum would have increased by at least £975.
Last Summer we were called by Mrs Hollie Dupont , who bought a ground floor flat in St Annes in October 2001. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Identical flats in St Annes with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed yearly. The lease ended on 14 April 2094. Taking into account 68 years remaining we estimated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 plus costs.
Last January we were contacted by Mr and Mrs. G Bertrand , who was assigned a lease of a garden apartment in St Annes in May 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Identical residencies in St Annes with a long lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish on 12 November 2105. Given that there were 79 years outstanding we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.