When it comes to residential leasehold premises in St Mary Cray, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years left. Anyone in St Mary Cray with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once the lease term has under 80 years remaining, under the current Act the landlord is entitled to calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in St Mary Cray with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in St Mary Cray can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with St Mary Cray lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the landlord of her first floor flat in St Mary Cray, Georgia initiated the lease extension process as the eighty year deadline was rapidly nearing. The lease extension completed in January 2015. The freeholder’s charges were negotiated to slightly above 650 pounds.
In 2013 we were contacted by Dr Mason Norbert who, having took over the lease of a garden flat in St Mary Cray in October 1997. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical properties in St Mary Cray with a long lease were worth £264,000. The mid-range ground rent payable was £60 invoiced per annum. The lease finished in 2079. Given that there were 53 years unexpired we estimated the premium to the landlord to extend the lease to be between £37,100 and £42,800 not including fees.
An example of a Lease Extension matter before the tribunal for a St Mary Cray flat 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 term as at the valuation date was 50.57 years.