For anyone whose St Columb home is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold premises in St Columb with more than 100 years outstanding on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your St Columb leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her purpose-built flat in St Columb, Natalie initiated the lease extension process just as the lease was nearing the critical eighty-year threshold. The transaction was finalised in September 2006. The landlord’s fees were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. L Mason who, having owned a one bedroom flat in St Columb in August 2005. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable homes in St Columb with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease elapsed in 2097. Having 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.
Mr and Mrs. N Rogers completed a one bedroom apartment in St Columb in November 2006. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Identical flats in St Columb with a long lease were worth £225,800. The mid-range ground rent payable was £60 billed every twelve months. The lease terminated in 2086. Having 60 years left we estimated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 exclusive of professional charges.