St Columb 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 your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying St Columb residential leaseholders to extend the terms of long leases. If you are a leasehold owner in St Columb you would be well advised to see if your lease has between seventy and ninety years remaining. There are compelling reasons why a St Columb leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in St Columb,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Columb valuers.
Off the back of protracted negotiations with the landlord of her two bedroom flat in St Columb, Chantelle initiated the lease extension process as the 80 year mark was swiftly nearing. The lease extension completed in September 2013. The freeholder’s costs were kept to an absolute minimum.
Last Winter we were e-mailed by Mr and Mrs. I Walker , who took over the lease of a basement flat in St Columb in June 1998. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar premises in St Columb with a long lease were valued around £257,800. The average ground rent payable was £65 billed per annum. The lease elapsed on 9 May 2091. Taking into account 65 years left we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of costs.
Dr C Fournier moved into a basement apartment in St Columb in November 2006. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable homes in St Columb with a long lease were valued about £191,400. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed in 2080. Given that there were 54 years unexpired we calculated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 plus expenses.