On the balance of probabilities where you own a flat in St Ives you actually own a long leasehold interest over your property
Leasehold residencies in St Ives with in excess of one hundred years outstanding on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
Engaging our service will provide you better control over the value of your St Ives leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the freeholder of her studio flat in St Ives, Natalie initiated the lease extension process as the eighty year deadline was swiftly coming. The lease extension was finalised in January 2012. The freeholder’s charges were kept to an absolute minimum.
Mrs Paige Lefèvre acquired a purpose-built flat in St Ives in September 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in St Ives with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 billed quarterly. The lease concluded on 14 July 2071. Considering the 51 years unexpired we calculated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 plus costs.
In 2014 we were approached by Mrs R Mitchell who, having bought a first floor flat in St Ives in April 1998. The dilemma was if we could estimate the price could be to prolong the lease by 90 years. Comparative properties in St Ives with a long lease were worth £215,600. The average amount of ground rent was £45 invoiced every twelve months. The lease ended in 2082. Given that there were 62 years as a residual term we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including legals.