As the the remaining lease term of a St Ives domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in St Ives will meet the qualifying criteria; that being said a lawyer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in St Ives with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in St Ives can be a difficult process. We recommend you obtain 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 a wealth of experience procuring St Ives lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Blake, started to get near to the 80-year threshold with the lease on his studio apartment in St Ives. In buying his property two decades ago, the unexpired term was of minimal significance. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Blake was able to extend his lease at the eleventh hour in March. Blake and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If the lease had slid to less than 80 years, the figure would have become more costly by a minimum £1,125.
In 2012 we were e-mailed by Mr Y Bailey who, having took over the lease of a one bedroom apartment in St Ives in November 2012. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable homes in St Ives with a long lease were in the region of £168,800. The average ground rent payable was £60 collected quarterly. The lease finished in 2080. Given that there were 55 years remaining we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus fees.
Last month we were called by Mr and Mrs. T Jackson , who moved into a ground floor apartment in St Ives in November 2010. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar residencies in St Ives with a long lease were in the region of £235,200. The average ground rent payable was £45 invoiced quarterly. The lease finished in 2091. Taking into account 66 years unexpired we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.