St Helens leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in St Helens enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in St Helens you really ought to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent 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 |
|---|---|
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers 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 conveyancing solicitor we work with provide it.
Half a year ago Jake, started to get near to the 80-year mark with the lease on his purpose- built flat in St Helens. Having bought his home two decades ago, the lease term was of little relevance. Fortunately, he noticed he needed to take action soon on Extending the lease. Jake extended the lease just ahead of time in June. Jake and the landlord in the end settled on an amount of £6,000 . If he not met the deadline, the price would have escalated by at least £875.
In 2010 we were phoned by Mrs Amy Bertrand who, having owned a one bedroom apartment in St Helens in November 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar premises in St Helens with a long lease were valued around £285,000. The average ground rent payable was £55 billed per annum. The lease concluded in 2105. Considering the 79 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
Dr L Leroy acquired a first floor flat in St Helens in February 1998. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in St Helens with 100 year plus lease were valued around £193,400. The average amount of ground rent was £65 collected every twelve months. The lease lapsed in 2085. Having 59 years left we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus costs.