Unfortunately that a St Annes residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the St Annes property market.Where your lease has approximately 90 years left, you should start considering 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 slips below 80 years - otherwise a higher premium will be payable. The majority of flat owners in St Annes will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your St Annes leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the landlord of her purpose-built apartment in St Annes, Alexandra initiated the lease extension process just as her lease was coming close to the critical eighty-year mark. The lease extension was finalised in October 2013. The landlord’s costs were negotiated to less than five hundred GBP.
In 2009 we were called by Ms Sophia Bailey who, having purchased a one bedroom apartment in St Annes in March 1999. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative homes in St Annes with 100 year plus lease were worth £208,200. The average amount of ground rent was £65 billed quarterly. The lease finished in 2086. Considering the 61 years outstanding we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus professional charges.
Mr and Mrs. N Leroy completed a basement flat in St Annes in July 2001. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in St Annes with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished in 2097. Taking into account 72 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.