With a residential leasehold property in St Bees, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years left. Leasehold owners in St Bees with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has under eighty years outstanding, under the current legislation the freeholder can calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure St Bees 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.
18 months ago Ben, came seriously near to the 80-year threshold with the lease on his one bedroom apartment in St Bees. Having bought his home two decades ago, the lease term was of no importance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Ben extended the lease just under the wire last April. Ben and the freeholder via the management company in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the price would have escalated by a minimum £875.
Last Summer we were contacted by Mrs Natalie Bennett , who bought a garden apartment in St Bees in February 2000. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparable homes in St Bees with a long lease were valued around £218,400. The mid-range amount of ground rent was £60 collected quarterly. The lease finished in 2085. Having 59 years outstanding we estimated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including expenses.
Dr N Bell took over the lease of a recently refurbished apartment in St Bees in July 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical homes in St Bees with 100 year plus lease were worth £205,000. The average ground rent payable was £50 billed annually. The lease expired in 2105. Taking into account 79 years outstanding we calculated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 not including fees.