With a domestic leasehold property in St Luke's, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years left. Residents in St Luke's with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once the lease term has below eighty years remaining, under the current Act the landlord can calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in St Luke's can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 Luke's lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Joshua, came perilously near to the 80-year threshold with the lease on his studio apartment in St Luke's. Having bought his flat 18 years previously, the lease term was of no importance. Thankfully, he recognised he needed to take steps soon on a lease extension. Joshua extended the lease at the eleventh hour last April. Joshua and the freeholder eventually agreed on the final figure of £6,000 . If he not met the deadline, the figure would have escalated by a minimum £900.
In 2014 we were e-mailed by Mr Adam Pérez who, having was assigned a lease of a studio flat in St Luke's in February 2003. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical residencies in St Luke's with a long lease were worth £264,000. The average amount of ground rent was £60 collected per annum. The lease finished on 3 April 2079. Considering the 53 years outstanding we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a St Luke's residence 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 affected 2 flats. The number of years remaining on the existing lease(s) was 72.39 years.