Unfortunately that a St Helens residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the St Helens property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. The majority of flat owners in St Helens will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold premises in St Helens with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
The conveyancing solicitors that we work with procure St Helens 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 conveyancer we work with provide it.
In the wake of eight months of protracted discussions with the freeholder of her basement apartment in St Helens, Amy started the lease extension process as the eighty year mark was rapidly advancing. The legal work was finalised in March 2010. The freeholder’s charges were restricted to less than 450 GBP.
Mr and Mrs. H Brown was assigned a lease of a purpose-built flat in St Helens in September 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparative residencies in St Helens with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £55 billed every twelve months. The lease end date was in 2102. Having 76 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
In 2009 we were contacted by Mrs H Fournier who, having was assigned a lease of a garden flat in St Helens in March 1999. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Identical premises in St Helens with an extended lease were in the region of £176,200. The average ground rent payable was £65 invoiced annually. The lease came to a finish on 24 September 2082. Having 56 years remaining we approximated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.