When it comes to domestic leasehold premises in St Ives, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Residents in St Ives with a lease approaching 81 years left should seriously think of extending it as soon as possible. When a lease has under 80 years remaining, under the current legislation the landlord can calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 Ives can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Ives lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Nathan, came seriously close to the eighty-year mark with the lease on his purpose- built flat in St Ives. Having bought his property two decades ago, the lease term was of minimal importance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Nathan was able to extend his lease just under the wire in April. Nathan and the freeholder in the end settled on a premium of £6,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £950.
Mr and Mrs. R Clark bought a one bedroom flat in St Ives in August 2010. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar properties in St Ives with an extended lease were in the region of £256,600. The average amount of ground rent was £60 billed yearly. The lease terminated in 2076. Taking into account 52 years remaining we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus professional charges.
Mr E Taylor moved into a studio apartment in St Ives in February 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in St Ives with a long lease were worth £218,000. The mid-range ground rent payable was £45 billed monthly. The lease ran out in 2087. Taking into account 63 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus expenses.