Unfortunately that a St Columb residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the St Columb property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in St Columb will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in St Columb with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Columb can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience dealing with St Columb lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Jacob, started to get close to the 80-year mark with the lease on his studio flat in St Columb. In buying his flat 18 years ago, the length of the lease was of no bearing. by good luck, he became aware that he needed to take steps soon on a lease extension. Jacob arranged for a lease extension just under the wire in June. Jacob and the freeholder subsequently agreed on the final figure of £6,000 . If he not met the deadline, the figure would have gone up by a minimum £925.
Last Autumn we were e-mailed by Mrs M Bennett , who purchased a garden apartment in St Columb in October 1998. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable homes in St Columb with a long lease were in the region of £233,200. The average ground rent payable was £60 invoiced quarterly. The lease expired on 28 August 2087. Considering the 61 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of professional charges.
Last month we were called by Mr Sam Girard , who bought a first floor flat in St Columb in October 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in St Columb with 100 year plus lease were valued around £171,800. The mid-range ground rent payable was £55 invoiced monthly. The lease lapsed on 27 January 2076. Taking into account 50 years unexpired we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus fees.