St Columb leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in St Columb will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in St Columb can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience dealing with 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.
Half a year ago Alexander, came precariously near to the 80-year mark with the lease on his two bedroom flat in St Columb. Having purchased his flat 19 years previously, the length of the lease was of little importance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Alexander was able to extend his lease just in the nick of time in January. Alexander and the landlord subsequently settled on sum of £6,000 . If he not met the deadline, the amount would have increased by at least £1,150.
Ms Ella Thomas owned a first floor apartment in St Columb in July 2002. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative properties in St Columb with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease lapsed in 2101. Given that there were 77 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Mrs L Lefèvre bought a first floor apartment in St Columb in June 2001. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative homes in St Columb with 100 year plus lease were valued about £260,200. The average amount of ground rent was £65 invoiced annually. The lease finished on 15 April 2090. Given that there were 66 years unexpired we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of professional charges.