The re-sale value of a leasehold property in St Anns is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded in advance of the 80 year threshold. Statute enables St Anns qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in St Anns with over 100 years unexpired 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in St Anns 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 a wealth of experience dealing with St Anns lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Jayden, started to get near to the eighty-year mark with the lease on his garden apartment in St Anns. In buying his property two decades ago, the unexpired term was of little concern. As luck would have it, he realised he needed to take action soon on a lease extension. Jayden was able to extend his lease just under the wire in September. Jayden and the freeholder via the managing agents ultimately agreed on sum of £6,000 . If the lease had gone lower than 80 years, the price would have escalated by at least £1,075.
In 2010 we were e-mailed by Mr M Cooper who, having moved into a ground floor flat in St Anns in January 2011. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable homes in St Anns with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease lapsed in 2096. Taking into account 70 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Ms O Morris moved into a recently refurbished apartment in St Anns in February 2008. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in St Anns with an extended lease were valued about £246,800. The average ground rent payable was £60 invoiced yearly. The lease ran out on 23 April 2076. Taking into account 50 years left we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of costs.