St George leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying St George residential leaseholders to extend the terms of long leases. If you are a leasehold owner in St George you must investigate if your lease has between 70 and ninety years left. There are compelling reasons why a St George flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in St George can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 procuring St George lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy correspondence with the landlord of her leasehold apartment in St George, Laura started the lease extension process as the eighty year mark was fast nearing. The lease extension was concluded in October 2009. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were called by Dr Kyle Gray who, having was assigned a lease of a one bedroom apartment in St George in November 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical properties in St George with an extended lease were valued about £260,200. The mid-range ground rent payable was £65 collected monthly. The lease ran out in 2091. Taking into account 66 years remaining we calculated the premium to the landlord for the lease extension to be within £16,200 and £18,600 plus professional charges.
Last Autumn we were called by Ms L André , who moved into a garden apartment in St George in April 1999. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative properties in St George with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 collected yearly. The lease ran out in 2080. Taking into account 55 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.