Chances are that if you own a flat in St George you actually own a long leasehold interest over your property
Leasehold properties in St George with over 100 years outstanding 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure St George lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Liam was the the leasehold owner of a studio flat in St George being marketed with a lease of fraction over sixty years unexpired. Liam informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Liam to exercise his statutory right. Liam procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last year we were approach by Mr and Mrs. V Flores , who completed a one bedroom apartment in St George in January 2000. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Identical homes in St George with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed every twelve months. The lease lapsed on 12 May 2103. Considering the 78 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
Last Summer we were approach by Mrs Ellie Rivera , who purchased a one bedroom flat in St George in November 1997. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical flats in St George with 100 year plus lease were valued about £267,600. The average ground rent payable was £65 collected quarterly. The lease expiry date was in 2092. Taking into account 67 years outstanding we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 not including costs.