St Pancras leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in St Pancras will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in St Pancras with in excess of one hundred years outstanding 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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 are not acceptable. 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; |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 will provide you better control over the value of your St Pancras leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Theo, started to get close to the 80-year threshold with the lease on his one bedroom flat in St Pancras. In buying his home two decades ago, the lease term was of minimal bearing. Luckily, he recognised he needed to take steps soon on Extending the lease. Theo extended the lease just in the nick of time in May. Theo and the freeholder via the managing agents in the end settled on an amount of £6,000 . If the lease had dipped below 80 years, the price would have increased by at least £1,100.
Last Summer we were called by Mr and Mrs. R Ward , who acquired a newly refurbished apartment in St Pancras in October 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in St Pancras with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded on 12 January 2105. Taking into account 79 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.
An example of a Lease Extension case 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 number of years remaining on the existing lease(s) was 66.8 years.