St James residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold residencies in St James with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Using our service gives you enhanced control over the value of your St James leasehold, as your property will be more valuable and saleable in terms of lease length should you decide 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.
Blake owned a high value flat in St James on the market with a lease of fraction over sixty years outstanding. Blake on an informal basis contacted his freeholder 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 an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Dr T Bonnet took over the lease of a garden apartment in St James in April 2010. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative properties in St James with a long lease were valued around £250,400. The mid-range ground rent payable was £65 billed quarterly. The lease ran out on 21 July 2089. Having 64 years left we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus expenses.
An example of a Lease Extension matter before the tribunal for a St James property is Flats 12A & 19, Evelyn Mansions Carlisle Place in June 2009. The Tribunal held that the price to be paid for the new lease of Flat 12A is £168,824, For the other flat the price was set at £169,110 This case related to 2 flats. The unexpired residue of the current lease was 56 years.