The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Meliden may extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Meliden lease extension. Shelving the costs now simply escalates the premium you will ultimately have to pay for a lease extension.
Leasehold residencies in Meliden with in excess of one hundred years remaining 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancing solicitors that we work with handle Meliden 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 conveyancer we work with provide it.
Jonathan was the the leasehold proprietor of a 2 bedroom apartment in Meliden on the market with a lease of fraction over 72 years unexpired. Jonathan on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
Ms I Stewart completed a newly refurbished apartment in Meliden in July 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable properties in Meliden with a long lease were valued about £290,000. The mid-range ground rent payable was £45 collected quarterly. The lease expired in 2097. Given that there were 72 years outstanding we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including legals.
Last year we were contacted by Mr and Mrs. P Edwards , who purchased a one bedroom flat in Meliden in May 1999. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar flats in Meliden with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced monthly. The lease lapsed on 13 January 2086. Considering the 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 not including fees.