The only way is down when it comes to St Fagans lease terms. St Fagans leaseholds that have a lease term shorter than 80 years will reduce in market price even faster, and the cost to extend your lease will increase.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| 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 | 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. |
Lease extensions in St Fagans can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in this area.
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 Fagans lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Adam, came precariously close to the 80-year threshold with the lease on his leasehold apartment in St Fagans. In buying his flat two decades ago, the lease term was of little bearing. As luck would have it, he realised he needed to take action soon on a lease extension. Adam was able to extend his lease just under the wire last June. Adam and the landlord eventually agreed on an amount of £5,000 . If the lease had gone below 80 years, the sum would have gone up by at least £1,050.
In 2010 we were phoned by Mr and Mrs. N Bonnet who, having bought a one bedroom flat in St Fagans in March 2003. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative residencies in St Fagans with a long lease were worth £300,000. The average amount of ground rent was £50 billed yearly. The lease end date was in 2102. Taking into account 76 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Mr and Mrs. M Harris was assigned a lease of a garden flat in St Fagans in January 2004. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparable premises in St Fagans with 100 year plus lease were in the region of £257,800. The average amount of ground rent was £65 collected monthly. The lease expired on 24 June 2091. Having 65 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including fees.