Why you should start your St Ives lease extension

Top reasons for lease extension now:

A St Ives lease depreciates with the years remaining on the lease.

St Ives 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. It is the case that most St Ives tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in St Ives you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

St Ives property with a lease extension has roughly the same value as a freehold

Leasehold properties in St Ives with more than one hundred years unexpired 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may decide not to lend on a short lease

Banks and building societies do not like short residential leases. You most probably experience difficulties if you need to sell your flat in St Ives if the remaining lease term is less than the criteria set by most lenders. Different mortgage companies have different criteria but on the whole theyrequire a minimum remaining lease term of 65 years.

What makes us experts in St Ives lease extensions?

The conveyancing solicitors that we work with undertake St Ives lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

St Ives Lease Extension Case Summaries:

Ella, St Ives, Cornwall,

Off the back of protracted discussions with the landlord of her ground floor apartment in St Ives, Ella initiated the lease extension process as the eighty year mark was rapidly nearing. The transaction was finalised in January 2009. The landlord’s charges were kept to an absolute minimum.

St Ives case:

Last November we were e-mailed by Mrs Bethan Rodríguez , who acquired a one bedroom apartment in St Ives in February 1995. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in St Ives with an extended lease were valued about £245,000. The mid-range ground rent payable was £45 invoiced monthly. The lease concluded in 2094. Considering the 68 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.

St Ives case:

Mr and Mrs. D Cook took over the lease of a first floor flat in St Ives in September 2012. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Comparative properties in St Ives with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease termination date was on 9 April 2105. Taking into account 79 years remaining we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.