When it comes to residential leasehold property in St Pancras, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Residents in St Pancras with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once a lease has under 80 years left, under the current statute the landlord can calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Pancras can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 procuring St Pancras lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Lucas, came critically near to the 80-year threshold with the lease on his garden flat in St Pancras. Having bought his property 19 years previously, the unexpired term was of minimal importance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Lucas extended the lease just under the wire in September. Lucas and the freeholder via the managing agents eventually settled on an amount of £5,500 . If the lease had slipped below 80 years, the price would have increased by a minimum £1,025.
Ms Lauren Martínez completed a first floor flat in St Pancras in February 2010. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative homes in St Pancras with 100 year plus lease were worth £210,000. The average ground rent payable was £50 billed quarterly. The lease end date was in 2105. Having 80 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
An example of a Lease Extension decision for a St Pancras property is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case related to 1 flat. The unexpired term as at the valuation date was 66.8 years.