On the balance of probabilities if you own a flat in Meliden you actually own a long leasehold interest over your property
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Meliden,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Meliden valuers.
Last October Teddy, came perilously near to the eighty-year mark with the lease on his leasehold flat in Meliden. Having purchased his flat 19 years ago, the length of the lease was of no significance. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Teddy arranged for a lease extension just under the wire last March. Teddy and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If the lease had dipped below eighty years, the price would have become more exhorbitant by at least £1,000.
Last Winter we were contacted by Mr Alex Petit , who moved into a studio flat in Meliden in February 2007. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Identical properties in Meliden with a long lease were in the region of £233,200. The average amount of ground rent was £60 collected yearly. The lease finished in 2086. Having 61 years outstanding we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus legals.
In 2010 we were contacted by Dr Jayden White who, having owned a ground floor flat in Meliden in January 2007. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical premises in Meliden with 100 year plus lease were worth £171,800. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed on 3 October 2075. Taking into account 50 years left we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus costs.