St Annes leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in St Annes will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in St Annes can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 procuring 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.
Adam owned a conversion flat in St Annes being sold with a lease of a few days over 59 years remaining. Adam on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Adam to invoke his statutory right. Adam procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
In 2010 we were approached by Ms U Bennett who, having completed a purpose-built apartment in St Annes in May 1998. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical premises in St Annes with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 invoiced per annum. The lease terminated on 19 August 2092. Given that there were 66 years outstanding we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
In 2010 we were approached by Ms U Smith who, having acquired a newly refurbished apartment in St Annes in June 2010. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative homes in St Annes with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease termination date was on 17 October 2103. Considering the 77 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.