On the balance of probabilities where you own a flat in St Austell you actually own a long leasehold interest over your property
Leasehold properties in St Austell with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in St Austell can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 dealing with St Austell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sam was the the leasehold proprietor of a conversion flat in St Austell being marketed with a lease of a little over 61 years outstanding. Sam informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Sam to exercise his statutory right. Sam obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2010 we were called by Mr and Mrs. F Robinson who, having bought a studio flat in St Austell in June 2009. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical homes in St Austell with an extended lease were worth £261,600. The mid-range amount of ground rent was £60 billed quarterly. The lease lapsed on 21 March 2077. Taking into account 52 years remaining we calculated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 not including costs.
Dr Lydia James took over the lease of a first floor apartment in St Austell in January 1995. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in St Austell with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 billed monthly. The lease came to a finish on 23 February 2088. Taking into account 63 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 not including legals.