St Margarets leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in St Margarets will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Yorkshire 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. |
Retaining our service gives you enhanced control over the value of your St Margarets leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the landlord of her basement flat in St Margarets, Natalie started the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in May 2007. The landlord’s charges were negotiated to below 500 GBP.
In 2010 we were approached by Mrs S Norbert who, having moved into a first floor flat in St Margarets in March 2012. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparative homes in St Margarets with an extended lease were valued around £210,000. The average amount of ground rent was £50 billed every twelve months. The lease finished on 12 February 2101. Taking into account 80 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension case 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 affected 1 flat. The number of years remaining on the existing lease(s) was 60.45 years.