Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in St Bees. Inevitably, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the property has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in St Bees have the right to extend the lease for an additional 90 years in accordance with statute. Do give careful attention before delaying your St Bees lease extension. Holding off that expense now only increases the price you will ultimately incur to extend your lease
Leasehold properties 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 value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in St Bees,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Bees valuers.
Following lengthy discussions with the landlord of her one bedroom flat in St Bees, Jennifer initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The lease extension completed in September 2009. The landlord’s fees were restricted to slightly above 500 pounds.
In 2013 we were called by Mr and Mrs. L Lambert who, having moved into a studio flat in St Bees in April 2000. The question was if we could approximate the premium could be for a 90 year lease extension. Comparable flats in St Bees with an extended lease were valued about £230,800. The mid-range ground rent payable was £60 billed per annum. The lease ran out in 2085. Having 60 years remaining we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of fees.
In 2012 we were called by Mrs Sarah Phillips who, having owned a recently refurbished flat in St Bees in October 2003. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in St Bees with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 collected per annum. The lease expired on 12 November 2105. Having 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.