On the balance of probabilities if you own a flat in St Helens you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in St Helens,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Helens valuers.
Following unsuccessful discussions with the landlord of her ground floor apartment in St Helens, Daisy started the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction was concluded in January 2006. The landlord’s charges were negotiated to under 600 GBP.
Last Autumn we were called by Dr Bethany Torres , who acquired a first floor flat in St Helens in March 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative properties in St Helens with a long lease were valued about £191,000. The average amount of ground rent was £65 collected every twelve months. The lease ran out in 2083. Having 58 years left we calculated the premium to the landlord for the lease extension to be within £23,800 and £27,400 not including costs.
Dr E Cox bought a purpose-built apartment in St Helens in August 2004. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in St Helens with an extended lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished on 5 February 2094. Given that there were 69 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.