The nearer a residential lease in St Columb nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 99 years to run then this decrease may be negligible however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in St Columb will qualify for this right; nevertheless a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in St Columb with in excess of 100 years remaining 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your St Columb leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan owned a studio flat in St Columb on the market with a lease of just over 72 years outstanding. Jonathan on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mrs N Clark acquired a basement flat in St Columb in June 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical properties in St Columb with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 billed yearly. The lease expiry date was in 2088. Taking into account 62 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus fees.
In 2010 we were called by Mr Michael Stewart who, having completed a newly refurbished apartment in St Columb in September 2007. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparable properties in St Columb with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded on 1 May 2077. Considering the 51 years unexpired we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.