Unfortunately that a St Austell residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the St Austell property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be payable. Most leasehold owners in St Austell will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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 |
| 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. |
Using our service will provide you enhanced control over the value of your St Austell leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel was the the leasehold owner of a 2 bedroom flat in St Austell on the market with a lease of fraction over 59 years left. Gabriel on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Ms N Jones was assigned a lease of a garden flat in St Austell in March 2006. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in St Austell with an extended lease were worth £280,000. The average ground rent payable was £55 invoiced yearly. The lease expired on 13 November 2103. Considering the 78 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.
In 2013 we were called by Mr and Mrs. Y Morel who, having acquired a purpose-built flat in St Austell in March 2001. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparable premises in St Austell with an extended lease were valued around £191,000. The mid-range ground rent payable was £65 collected every twelve months. The lease terminated on 27 January 2083. Having 58 years remaining we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 plus professional charges.