St Fagans leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in St Fagans will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you increased control over the value of your St Fagans leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her leasehold flat in St Fagans, Victoria initiated the lease extension process just as her lease was nearing the crucial eighty-year mark. The legal work was concluded in May 2008. The freeholder’s costs were negotiated to under 450 GBP.
In 2011 we were contacted by Mr and Mrs. S Rogers who, having completed a purpose-built flat in St Fagans in June 2010. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar homes in St Fagans with an extended lease were worth £205,000. The average amount of ground rent was £50 collected per annum. The lease elapsed on 14 June 2103. Having 78 years unexpired we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2009 we were e-mailed by Mr and Mrs. V García who, having moved into a first floor flat in St Fagans in February 1997. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable homes in St Fagans with 100 year plus lease were valued about £267,600. The mid-range amount of ground rent was £65 collected yearly. The lease finished on 9 January 2092. Having 67 years as a residual term we approximated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of fees.