The only way is down when it comes to St Pancras lease terms. St Pancras leaseholds that have a lease term less than than 80 years will de-escalate in value even faster, and the cost of extending your lease will go up.
Leasehold properties in St Pancras with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your St Pancras leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Hunter, started to get close to the 80-year mark with the lease on his garden apartment in St Pancras. In buying his property two decades ago, the length of the lease was of minimal bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Hunter extended the lease just in the nick of time last July. Hunter and the freeholder eventually agreed on the final figure of £5,500 . If he failed to meet the deadline, the figure would have become more costly by at least £1,125.
Mr M Watson took over the lease of a one bedroom flat in St Pancras in August 2010. We are asked if we could approximate the price would be for a ninety year lease extension. Identical residencies in St Pancras with a long lease were worth £223,400. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2084. Considering the 59 years remaining we estimated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 not including costs.
An example of a Lease Extension case for a St Pancras premises 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 number of years remaining on the existing lease(s) was 66.8 years.