St Annes leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in St Annes enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in St Annes you really ought to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a St Annes leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold premises in St Annes with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| 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. |
Using our service will provide you better control over the value of your St Annes leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her studio apartment in St Annes, Mia commenced the lease extension process as the 80 year threshold was swiftly nearing. The transaction was finalised in May 2011. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were contacted by Mrs Natasha Díaz who, having was assigned a lease of a one bedroom flat in St Annes in January 2002. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparable homes in St Annes with 100 year plus lease were worth £261,600. The average ground rent payable was £60 invoiced quarterly. The lease expired in 2078. Taking into account 52 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 not including legals.
In 2014 we were called by Mr and Mrs. F André who, having owned a purpose-built flat in St Annes in October 2002. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in St Annes with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected quarterly. The lease expiry date was on 13 May 2089. Having 63 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of fees.