St John's Wood leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in St John's Wood will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are also strict timetables and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in St John's Wood with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in St John's Wood can be a difficult process. We recommend you secure professional help from a conveyancer 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 procuring St John's Wood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Michael, came perilously close to the eighty-year mark with the lease on his one bedroom apartment in St John's Wood. Having bought his property 18 years previously, the lease term was of minimal significance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Michael was able to extend his lease at the eleventh hour last March. Michael and the freeholder via the management company eventually agreed on a premium of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £950.
Last January we were called by Mr and Mrs. K Wilson , who was assigned a lease of a purpose-built flat in St John's Wood in February 2012. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparable flats in St John's Wood with a long lease were valued about £193,400. The average ground rent payable was £65 collected every twelve months. The lease expired in 2084. Taking into account 59 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus costs.
An example of a Lease Extension matter before the tribunal for a St John's Wood premises is Garden Flat 195 Goldhurst Terrace in May 2012. The Tribunal held in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease should be £60,855.00. This case was in relation to 1 flat. The unexpired term as at the valuation date was 60.16 years.