As the the remaining lease term of a St Neots domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. Many flat owners in St Neots will qualify for this right; however a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with undertake St Neots lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After lengthy correspondence with the landlord of her ground floor apartment in St Neots, Jasmine commenced the lease extension process as the 80 year threshold was swiftly approaching. The legal work was finalised in June 2015. The landlord’s costs were kept to an absolute minimum.
Dr L Laurent bought a studio apartment in St Neots in September 2011. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Similar flats in St Neots with a long lease were worth £210,600. The average ground rent payable was £45 billed yearly. The lease came to a finish in 2087. Given that there were 62 years unexpired we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.
Mr U Roberts acquired a one bedroom flat in St Neots in January 1998. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative properties in St Neots with a long lease were in the region of £265,000. The average amount of ground rent was £50 collected every twelve months. The lease finished on 16 March 2098. Considering the 73 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.