St Margarets Lease Extension - Free Consultation

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Main reasons to start your St Margarets lease extension


Why you should commence your St Margarets lease extension today:

A St Margarets lease depreciates with the years remaining on the lease.

Chances are that if you own a flat in St Margarets you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to loan monies with a short lease

Lending institutions have specific criteria when lending monies secured on leasehold property. Some will simply refrain from lending at all once the residual lease term slips below a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than 75 years as adequate security. In addition to this being important when selling, it is also relevant if you are intending to refinance your St Margarets property.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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.
Leeds Building Society 85 years remaining from the start of the mortgage.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.

What makes us experts in St Margarets lease extensions?

The conveyancing solicitors that we work with handle 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.

St Margarets Lease Extension Example Cases:

Jamie, St Margarets, North London,

Jamie owned a conversion apartment in St Margarets being marketed with a lease of a little over 72 years outstanding. Jamie informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.

St Margarets case:

Last Christmas we were phoned by Mr and Mrs. F Parker , who completed a one bedroom apartment in St Margarets in May 2000. We are asked if we could estimate the price would be to extend the lease by an additional years. Similar homes in St Margarets with a long lease were worth £206,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated on 23 May 2081. Having 56 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.

Decision in Hounslow

An example of a Lease Extension decision for a St Margarets property 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 related to 1 flat. The unexpired residue of the current lease was 60.45 years.