St Annes leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in St Annes will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain cases you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in St Annes with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in St Annes can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with St Annes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley was the the leasehold proprietor of a conversion apartment in St Annes being marketed with a lease of just over fifty eight years outstanding. Riley informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to exercise his statutory right. Riley obtained expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
Mr K Brown acquired a purpose-built flat in St Annes in April 2008. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Identical premises in St Annes with 100 year plus lease were worth £270,000. The average ground rent payable was £55 collected quarterly. The lease ended on 21 November 2101. Taking into account 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
Mrs Jasmine Young acquired a recently refurbished flat in St Annes in September 2010. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar residencies in St Annes with an extended lease were worth £173,800. The average amount of ground rent was £65 invoiced every twelve months. The lease ended in 2081. Having 55 years remaining we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including expenses.