There is no doubt about it a leasehold flat or house in St Austell is a wasting asset as a result of the shortening lease. Where the residual term has, over 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. The majority of flat owners in St Austell will qualify for this right; that being said a conveyancing solicitor will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your St Austell leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Toby was the the leasehold owner of a high value flat in St Austell being marketed with a lease of a little over 72 years unexpired. Toby on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Spring we were phoned by Mr and Mrs. M Thompson , who moved into a one bedroom flat in St Austell in September 2003. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparative flats in St Austell with an extended lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated on 12 January 2097. Given that there were 72 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last Spring we were called by Ms W Mercier , who completed a ground floor flat in St Austell in April 2003. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable residencies in St Austell with a long lease were in the region of £261,600. The average amount of ground rent was £60 invoiced quarterly. The lease finished in 2077. Given that there were 52 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 not including fees.