Meliden leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Meliden residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Meliden you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Meliden with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
After lengthy negotiations with the landlord of her first floor apartment in Meliden, Rhiannon started the lease extension process as the 80 year threshold was rapidly advancing. The legal work was finalised in July 2008. The landlord’s costs were negotiated to about 450 pounds.
In 2013 we were phoned by Mrs Harriet Thompson who, having took over the lease of a one bedroom apartment in Meliden in September 1997. The question was if we could estimate the premium could be for a 90 year lease extension. Identical homes in Meliden with an extended lease were valued about £240,600. The average amount of ground rent was £60 invoiced yearly. The lease came to a finish on 25 April 2087. Considering the 62 years remaining we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.
In 2010 we were e-mailed by Mr B Ricardo who, having moved into a one bedroom flat in Meliden in November 1996. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparative premises in Meliden with a long lease were worth £174,200. The average ground rent payable was £55 billed monthly. The lease ended in 2076. Having 51 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including expenses.