When it comes to residential leasehold premises in St Columb, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Residents in St Columb with a lease approaching 81 years remaining should seriously think of extending it sooner than later. Once the lease term has under 80 years outstanding, under the relevant Act the freeholder can calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in St Columb,the lease extension experts that we work with will always be happy 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 Columb valuers.
Trailing protracted correspondence with the freeholder of her leasehold flat in St Columb, Catherine initiated the lease extension process as the eighty year deadline was swiftly coming. The legal work was finalised in November 2007. The freeholder’s fees were negotiated to below five hundred GBP.
Last Spring we were called by Ms B Girard , who was assigned a lease of a one bedroom apartment in St Columb in May 1999. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in St Columb with a long lease were valued about £300,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished on 5 June 2101. Given that there were 76 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last Summer we were called by Dr P Lefèvre , who purchased a newly refurbished flat in St Columb in January 1997. The question was if we could approximate the premium could be for a ninety year extension to my lease. Identical premises in St Columb with a long lease were valued around £257,800. The average ground rent payable was £65 invoiced quarterly. The lease ended in 2090. Taking into account 65 years remaining we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of professional charges.