There is no doubt about it a leasehold property in St Mellons is a wasting asset as a result of the shortening lease. If the lease has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in St Mellons will qualify for this right; however a lawyer will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in St Mellons with in excess of 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in St Mellons can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 a wealth of experience procuring St Mellons lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Nathan, started to get near to the eighty-year mark with the lease on his one bedroom apartment in St Mellons. Having purchased his flat two decades ago, the length of the lease was of minimal concern. Luckily, he became aware that he would soon be paying an escalated premium for a lease extension. Nathan was able to extend his lease at the eleventh hour in August. Nathan and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If the lease had slipped lower than eighty years, the amount would have become more exhorbitant by a minimum £1,050.
Last year we were approach by Mr and Mrs. E Vincent , who purchased a basement apartment in St Mellons in November 2001. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Similar homes in St Mellons with a long lease were valued around £275,000. The average amount of ground rent was £55 collected quarterly. The lease finished on 11 May 2101. Taking into account 76 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
In 2009 we were e-mailed by Mr and Mrs. W Robinson who, having completed a recently refurbished apartment in St Mellons in November 2000. The question was if we could estimate the premium could be for a 90 year lease extension. Identical homes in St Mellons with 100 year plus lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease expired on 25 March 2081. Taking into account 56 years remaining we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including legals.