St Annes leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most St Annes tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in St Annes you would be well advised to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a St Annes flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 get professional help from a lawyer 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.
Liam was the the leasehold owner of a studio apartment in St Annes being marketed with a lease of a little over 61 years unexpired. Liam informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Liam to invoke his statutory right. Liam obtained expert advice and secured an acceptable resolution informally and sell the property.
In 2012 we were phoned by Dr L Mercier who, having purchased a ground floor apartment in St Annes in July 2009. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in St Annes with a long lease were in the region of £265,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out in 2099. Considering the 74 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Last year we were called by Mr and Mrs. H François , who acquired a ground floor apartment in St Annes in March 1999. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar homes in St Annes with an extended lease were valued around £264,000. The average ground rent payable was £60 billed monthly. The lease elapsed in 2078. Given that there were 53 years remaining we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of costs.