St Luke's leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in St Luke's will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in St Luke's with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure St Luke's 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.
During the course of the last few months Leo, started to get close to the 80-year mark with the lease on his basement flat in St Luke's. Having bought his property 19 years ago, the length of the lease was of minimal bearing. Fortunately, he noticed he needed to take action soon on a lease extension. Leo was able to extend his lease at the eleventh hour in June. Leo and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If he not met the deadline, the sum would have increased by a minimum £1,125.
Last month we were called by Mr and Mrs. D Lefèvre , who moved into a ground floor apartment in St Luke's in November 1999. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical properties in St Luke's with 100 year plus lease were in the region of £168,800. The average ground rent payable was £60 invoiced yearly. The lease finished in 2080. Given that there were 55 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.
An example of a Lease Extension case for a St Luke's property is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines 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 for each Property should be £12,350.00. This case related to 2 flats. The unexpired term was 72.39 years.