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 becomes 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 see if your lease has between 70 and ninety years left. 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
Leasehold premises in St Helens with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Lease extensions in St Helens can be a difficult process. We recommend you secure guidance from a conveyancer 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.
Gabriel was the the leasehold owner of a studio apartment in St Helens being sold with a lease of a little over 72 years left. Gabriel informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Dr Eliot Rogers purchased a one bedroom apartment in St Helens in February 2004. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in St Helens with 100 year plus lease were valued about £218,000. The average ground rent payable was £45 billed yearly. The lease lapsed on 15 April 2088. Considering the 63 years left we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 not including costs.
In 2013 we were approached by Mr and Mrs. C Alexander who, having took over the lease of a recently refurbished flat in St Helens in July 1998. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Similar residencies in St Helens with a long lease were in the region of £265,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ended on 9 February 2099. Taking into account 74 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.