The closer a domestic lease in St Anns nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in St Anns will meet the qualifying criteria; that being said a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in St Anns with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Irrespective of whether you are a tenant or a landlord in St Anns,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Anns valuers.
Leon was the the leasehold owner of a conversion apartment in St Anns being sold with a lease of fraction over fifty eight years remaining. Leon on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Ms Victoria Williams completed a ground floor flat in St Anns in October 1995. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative premises in St Anns with an extended lease were worth £250,000. The mid-range ground rent payable was £50 billed annually. The lease ran out on 13 July 2094. Considering the 68 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
Last Spring we were called by Dr N Torres , who was assigned a lease of a first floor apartment in St Anns in April 1997. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative premises in St Anns with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 billed yearly. The lease expired on 19 June 2105. Having 79 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.