For anyone whose St Ives home is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Yorkshire 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. |
Lease extensions in St Ives can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 dealing with 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 the wake of 9 months of protracted negotiations with the freeholder of her basement flat in St Ives, Rachael started the lease extension process as the eighty year mark was quickly advancing. The lease extension completed in March 2010. The landlord’s charges were kept to an absolute minimum.
In 2009 we were phoned by Mr and Mrs. U Green who, having purchased a studio apartment in St Ives in June 2006. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Similar premises in St Ives with a long lease were worth £256,600. The average ground rent payable was £60 collected monthly. The lease concluded on 6 October 2078. Given that there were 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £41,800 and £48,400 exclusive of expenses.
Last Christmas we were called by Mr and Mrs. B Gómez , who acquired a one bedroom apartment in St Ives in April 2009. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable properties in St Ives with 100 year plus lease were valued around £218,000. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish on 26 May 2089. Considering the 63 years left we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus costs.