Why you should commence your St Bees lease extension

Top reasons for lease extension now:

Increase your lease and increase your St Bees property value

St Bees leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying St Bees residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in St Bees you really ought to see if your lease has between seventy and 90 years left. There are compelling reasons why a St Bees leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay

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 remaining 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to finance a property with a short lease

Nearly all banks and building societies will be unwilling to lend on a lease with under seventy years remaining - although this varies from lender to lender. A buyer will likely encounter difficulties in obtaining a mortgage and this could result in your St Bees property being difficult to sell or to obtain finance on.

Why use us for your lease extension in St Bees?

The conveyancing solicitors 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 conveyancing solicitor we work with provide it.

St Bees Lease Extension Example Cases:

Catherine, St Bees, Cumbria,

Off the back of unsuccessful negotiations with the landlord of her garden apartment in St Bees, Catherine initiated the lease extension process just as her lease was approaching the critical eighty-year threshold. The transaction was concluded in May 2014. The landlord’s charges were kept to an absolute minimum.

St Bees case:

Last year we were contacted by Ms Amy Campbell , who purchased a one bedroom apartment in St Bees in June 2006. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical premises in St Bees with a long lease were worth £181,600. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded on 4 April 2078. Given that there were 52 years unexpired we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including legals.

St Bees case:

In 2014 we were called by Mr and Mrs. D Nelson who, having acquired a studio apartment in St Bees in January 2007. The question was if we could approximate the premium would be to prolong the lease by 90 years. Comparative flats in St Bees with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 billed yearly. The lease lapsed in 2098. Having 72 years as a residual term we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.