When it comes to domestic leasehold premises in St Margarets, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years left. Anyone in St Margarets with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the relevant Act the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is due.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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 |
The conveyancers that we work with procure St Margarets 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 conveyancing solicitor we work with provide it.
Trailing protracted correspondence with the landlord of her studio apartment in St Margarets, Alice initiated the lease extension process just as the lease was nearing the all-important eighty-year mark. The legal work was concluded in April 2005. The freeholder’s charges were kept to an absolute minimum.
Dr Andrew Roberts was assigned a lease of a one bedroom apartment in St Margarets in April 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in St Margarets with 100 year plus lease were valued around £213,600. The average ground rent payable was £60 invoiced monthly. The lease ended on 20 March 2082. Considering the 57 years left we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a St Margarets flat is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case was in relation to 1 flat. The unexpired residue of the current lease was 60.45 years.