Main reasons to start your St Bees lease extension

Main reasons to start your St Bees lease extension today:

Increase your lease and increase your St Bees property value

St Bees leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying St Bees residential leaseholders to extend the terms of long leases. If you are a leasehold owner in St Bees you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

St Bees property with a lease extension has roughly the same value as a freehold

Leasehold residencies in St Bees with in excess of 100 years unexpired 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 buying the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not lend with a short lease

The propensity since 2008 has been for banks to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically lenders were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our St Bees lease extension solicitors or enfranchisement solicitors

Retaining our service gives you increased control over the value of your St Bees leasehold, as your property will be more valuable and marketable in terms of 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.

St Bees Lease Extension Example Cases:

Thomas, St Bees, Cumbria

Two years ago Thomas, came very close to the eighty-year threshold with the lease on his ground floor apartment in St Bees. In buying his property twenty years ago, the unexpired term was of minimal significance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Thomas arranged for a lease extension at the eleventh hour last January. Thomas and the landlord ultimately settled on an amount of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £1,050.

St Bees case:

Last month we were contacted by Dr Archie Robinson , who took over the lease of a ground floor apartment in St Bees in October 2007. The question was if we could approximate the price would be for a ninety year extension to my lease. Identical residencies in St Bees with an extended lease were valued around £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease expired on 25 November 2097. Having 71 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.

St Bees case:

In 2011 we were phoned by Mrs F Flores who, having moved into a ground floor flat in St Bees in August 2009. The question was if we could approximate the price would be for a ninety year extension to my lease. Identical flats in St Bees with a long lease were in the region of £225,800. The average amount of ground rent was £60 billed yearly. The lease expiry date was on 25 October 2086. Considering the 60 years left we estimated the premium to the freeholder to extend the lease to be within £25,700 and £29,600 exclusive of fees.