St Helens leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying St Helens residential leaseholders to extend the terms of long leases. If you are a leasehold owner in St Helens you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in St Helens can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 a wealth of experience dealing with 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.
Subsequent to protracted correspondence with the freeholder of her purpose-built apartment in St Helens, Robyn started the lease extension process as the eighty year deadline was quickly coming. The lease extension was concluded in August 2009. The landlord’s costs were negotiated to under 700 GBP.
Last Winter we were contacted by Mr and Mrs. K Ricardo , who completed a one bedroom flat in St Helens in September 2006. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar residencies in St Helens with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease terminated on 24 November 2076. Taking into account 51 years unexpired we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including professional charges.
Last Christmas we were e-mailed by Dr Liam García , who owned a purpose-built flat in St Helens in November 2000. We are asked if we could approximate the price would be for a 90 year lease extension. Identical residencies in St Helens with an extended lease were worth £210,600. The average amount of ground rent was £45 invoiced per annum. The lease ended in 2087. Taking into account 62 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus fees.