The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in St Bees can extend the lease for an additional 90 years in accordance with legislation. Please think carefully before delaying your St Bees lease extension. Putting off the costs today simply increases the premium you will ultimately have to pay to extend the lease.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in St Bees can be a difficult process. We recommend you obtain guidance from a conveyancer 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.
In 2014 Eli, started to get close to the 80-year mark with the lease on his garden apartment in St Bees. In buying his home two decades ago, the unexpired term was of minimal relevance. Luckily, he recognised he needed to take steps soon on Extending the lease. Eli extended the lease just ahead of time in July. Eli and the landlord ultimately agreed on the final figure of £5,500 . If he not met the deadline, the figure would have become more costly by at least £925.
Last Autumn we were e-mailed by Ms Bethan Girard , who acquired a garden apartment in St Bees in February 1997. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in St Bees with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 billed every twelve months. The lease finished in 2076. Having 51 years unexpired we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
Mr and Mrs. A Bertrand took over the lease of a newly refurbished flat in St Bees in July 2004. The dilemma was if we could approximate the price would be for a 90 year lease extension. Similar residencies in St Bees with an extended lease were in the region of £285,000. The average amount of ground rent was £45 collected monthly. The lease expiry date was on 5 February 2096. Given that there were 71 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.