St Austell leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying St Austell residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in St Austell you really ought to check if your lease has between seventy and 90 years left. There are compelling reasons why a St Austell leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in St Austell with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
The conveyancers that we work with handle 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.
Oliver owned a high value apartment in St Austell on the market with a lease of fraction over fifty eight years remaining. Oliver informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
Last Christmas we were approach by Mr and Mrs. M Reed , who was assigned a lease of a ground floor flat in St Austell in November 1996. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable flats in St Austell with an extended lease were valued about £245,000. The mid-range amount of ground rent was £50 collected yearly. The lease concluded on 5 February 2094. Considering the 68 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Last year we were contacted by Mr and Mrs. D Lewis , who took over the lease of a one bedroom apartment in St Austell in April 1995. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative residencies in St Austell with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed annually. The lease came to a finish on 21 March 2105. Given that there were 79 years left we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.