As the the remaining lease term of a St Mary Cray residential lease diminished so does its value and therefore the value of your property. If the lease has, over 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. Most flat owners in St Mary Cray will meet the qualifying criteria; however a conveyancer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in St Mary Cray,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Mary Cray valuers.
Following protracted correspondence with the freeholder of her purpose-built flat in St Mary Cray, Kate started the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work was finalised in August 2013. The landlord’s costs were restricted to about 600 pounds.
Last Christmas we were e-mailed by Mr and Mrs. H Bonnet , who moved into a garden flat in St Mary Cray in October 2008. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar properties in St Mary Cray with a long lease were valued around £235,200. The mid-range amount of ground rent was £45 invoiced per annum. The lease end date was in 2091. Having 66 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.
An example of a Lease Extension decision for a St Mary Cray residence is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case was in relation to 1 flat. The unexpired residue of the current lease was 50.57 years.