With a residential leasehold property in St Columb, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years remaining. Leasehold owners in St Columb with a lease approaching 81 years left should seriously think of extending it sooner than later. Once the lease term has less than 80 years outstanding, under the current legislation the landlord can calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in St Columb with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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. |
| 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:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 procure professional help from a conveyancing solicitor and valuer 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 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.
Off the back of lengthy negotiations with the freeholder of her basement apartment in St Columb, Megan commenced the lease extension process as the eighty year deadline was quickly nearing. The legal work was finalised in February 2009. The landlord’s charges were negotiated to less than 450 GBP.
In 2014 we were e-mailed by Dr I Moreau who, having moved into a first floor apartment in St Columb in January 2006. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable premises in St Columb with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 billed monthly. The lease concluded on 18 June 2101. Having 75 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
In 2009 we were approached by Dr K Richardson who, having bought a garden apartment in St Columb in January 2012. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical homes in St Columb with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced per annum. The lease ran out on 2 May 2090. Given that there were 64 years unexpired we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus fees.