On the balance of probabilities if you own a flat in St Bees you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Lease extensions in St Bees can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring St Bees lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Eli, started to get near to the eighty-year mark with the lease on his first floor apartment in St Bees. In buying his flat two decades ago, the lease term was of no significance. Fortunately, he realised he would soon be paying way over the odds for Extending the lease. Eli arranged for a lease extension just in the nick of time last March. Eli and the landlord subsequently agreed on the final figure of £5,500 . If the lease had fallen lower than 80 years, the sum would have increased by at least £1,025.
In 2014 we were e-mailed by Mr and Mrs. V Clark who, having moved into a purpose-built flat in St Bees in November 2003. We are asked if we could estimate the price could be to prolong the lease by ninety years. Similar properties in St Bees with an extended lease were in the region of £290,000. The average ground rent payable was £45 collected monthly. The lease lapsed on 12 July 2097. Given that there were 72 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including professional charges.
Ms E Mason took over the lease of a purpose-built flat in St Bees in July 2001. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable homes in St Bees with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced annually. The lease expired on 24 August 2086. Considering the 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including fees.