St Austell leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying St Austell residential leaseholders to extend the terms of long leases. If you are a leasehold owner in St Austell you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake St Austell lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After unsuccessful discussions with the landlord of her two bedroom apartment in St Austell, Eleanor started the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was finalised in August 2006. The freeholder’s fees were negotiated to about 700 GBP.
Last Summer we were phoned by Mr Joshua Anderson , who took over the lease of a basement flat in St Austell in January 2012. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar properties in St Austell with a long lease were valued about £208,200. The average amount of ground rent was £65 invoiced monthly. The lease lapsed in 2087. Taking into account 61 years left we calculated the premium to the landlord for the lease extension to be within £19,000 and £22,000 not including expenses.
In 2014 we were called by Mr I Hill who, having moved into a one bedroom apartment in St Austell in June 2009. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical properties in St Austell with an extended lease were valued around £260,000. The average ground rent payable was £50 billed monthly. The lease concluded on 15 October 2098. Taking into account 72 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.