When it comes to long leasehold property in St Pancras, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should 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 particularly when there are fewer than eighty years remaining. Residents in St Pancras with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years outstanding, under the current Act the landlord is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in St Pancras with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in St Pancras can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor 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 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.
16 months ago Oliver, started to get near to the eighty-year threshold with the lease on his one bedroom flat in St Pancras. In buying his property 18 years ago, the length of the lease was of little significance. Luckily, he recognised he needed to take action soon on Extending the lease. Oliver arranged for a lease extension at the eleventh hour in April. Oliver and the freeholder via the management company subsequently settled on a premium of £5,500 . If he not met the deadline, the premium would have gone up by at least £1,125.
Last Spring we were called by Mr J López , who was assigned a lease of a basement apartment in St Pancras in April 1995. The question was if we could estimate the price could be to prolong the lease by an additional years. Similar residencies in St Pancras with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish on 15 August 2086. Considering the 60 years unexpired we approximated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of professional charges.
An example of a Lease Extension decision for a St Pancras residence 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 was in relation to 1 flat. The unexpired lease term was 66.8 years.