St Werburghs leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Flat owners in St Werburghs will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in St Werburghs with over one hundred years unexpired 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in St Werburghs,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Werburghs valuers.
Half a year ago Hunter, came dangerously near to the 80-year threshold with the lease on his ground floor flat in St Werburghs. In buying his property two decades ago, the unexpired term was of no concern. by good luck, he became aware that he needed to take action soon on Extending the lease. Hunter was able to extend his lease just ahead of time in August. Hunter and the freeholder eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,050.
In 2013 we were approached by Dr V Nelson who, having moved into a one bedroom flat in St Werburghs in February 2007. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative premises in St Werburghs with a long lease were worth £198,800. The average amount of ground rent was £55 invoiced annually. The lease came to a finish on 2 September 2080. Considering the 55 years unexpired we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including costs.
Mrs J Campbell took over the lease of a one bedroom flat in St Werburghs in July 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in St Werburghs with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease terminated in 2100. Considering the 75 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.