The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in St Bees have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your St Bees lease extension. Postponing the costs now simply escalates the amount you will ultimately have to pay for a lease extension.
Leasehold residencies in St Bees with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in St Bees,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Bees valuers.
Aarav was the the leasehold owner of a high value apartment in St Bees being marketed with a lease of a few days over fifty eight years outstanding. Aarav informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
Last month we were contacted by Dr D Michel , who owned a ground floor apartment in St Bees in July 2000. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative residencies in St Bees with an extended lease were worth £257,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease expiry date was in 2091. Taking into account 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus professional charges.
Dr Robyn Bell bought a purpose-built apartment in St Bees in March 1997. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparative homes in St Bees with 100 year plus lease were in the region of £196,400. The average ground rent payable was £55 collected yearly. The lease came to a finish on 18 November 2080. Having 54 years remaining we calculated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus legals.