St Helens leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in St Helens will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Helens 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 in-depth market knowledge procuring St Helens lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the landlord of her studio apartment in St Helens, Elizabeth initiated the lease extension process just as her lease was nearing the critical 80-year mark. The legal work was concluded in January 2008. The landlord’s fees were kept to an absolute minimum.
Last month we were approach by Mr O David , who owned a first floor flat in St Helens in August 1996. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Similar flats in St Helens with a long lease were valued around £227,800. The average ground rent payable was £45 billed annually. The lease ran out in 2091. Having 65 years unexpired we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Last Summer we were contacted by Mr and Mrs. P Gray , who acquired a newly refurbished apartment in St Helens in July 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable flats in St Helens with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2102. Taking into account 76 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.