St Mary Cray leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most St Mary Cray tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in St Mary Cray you really ought to check if your lease has between seventy and ninety years remaining. There are good reasons why a St Mary Cray leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in St Mary Cray with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a landlord in St Mary Cray,the lease extension experts 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.
Trailing lengthy correspondence with the landlord of her garden flat in St Mary Cray, Jade started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work was concluded in November 2008. The landlord’s charges were restricted to below 700 GBP.
In 2014 we were called by Mr and Mrs. W Lambert who, having took over the lease of a recently refurbished flat in St Mary Cray in September 2000. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical premises in St Mary Cray with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease expired on 23 May 2079. Considering the 54 years unexpired we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus fees.
An example of a Lease Extension case for a St Mary Cray property 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 related to 1 flat. The remaining number of years on the lease was 50.57 years.