St Columb leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in St Columb will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in St Columb with over 100 years remaining on the lease are sometimes regarded as a ‘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 upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 be at least 75 years plus the term of the mortgage at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in St Columb can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 procuring St Columb lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Omar, started to get near to the eighty-year mark with the lease on his two bedroom apartment in St Columb. Having purchased his home two decades ago, the lease term was of minimal relevance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Omar arranged for a lease extension just ahead of time in July. Omar and the freeholder via the management company in the end agreed on the final figure of £6,000 . If the lease had dipped to less than eighty years, the figure would have become more exhorbitant by at least £1,025.
Last Autumn we were phoned by Mr and Mrs. O Hill , who owned a newly refurbished flat in St Columb in August 1995. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative premises in St Columb with 100 year plus lease were worth £216,000. The average ground rent payable was £60 billed yearly. The lease elapsed on 22 June 2084. Considering the 58 years outstanding we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus expenses.
In 2013 we were approached by Dr Jacob López who, having purchased a purpose-built flat in St Columb in June 2002. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in St Columb with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 billed yearly. The lease ended on 9 February 2104. Given that there were 78 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.