There is no doubt about it a leasehold flat or house in St Clears is a wasting asset as a result of the shortening lease. Where the lease has, more than 100 years to run then this decrease may be fractional however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in St Clears will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in St Clears with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Chelsea Building Society | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Yorkshire Building Society | 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. |
The lawyers that we work with procure St Clears 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.
14 months ago Alfie, started to get close to the 80-year mark with the lease on his leasehold apartment in St Clears. In buying his home two decades ago, the length of the lease was of minimal interest. As luck would have it, he became aware that he would imminently be paying way over the odds for Extending the lease. Alfie extended the lease just under the wire in June. Alfie and the landlord who owned the flat above eventually settled on a premium of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,025.
Mr D Scott moved into a garden apartment in St Clears in July 2009. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable premises in St Clears with a long lease were worth £198,400. The mid-range amount of ground rent was £65 billed annually. The lease end date was on 17 November 2085. Given that there were 59 years left we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus expenses.
In 2012 we were contacted by Mr and Mrs. J Lee who, having completed a first floor flat in St Clears in July 1995. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparable residencies in St Clears with a long lease were valued about £255,000. The average amount of ground rent was £50 billed monthly. The lease finished in 2096. Taking into account 70 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.