As the the remaining lease term of a Meliden domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Meliden will qualify for this right; however a conveyancer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Meliden with in excess of 100 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 buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Meliden,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Meliden valuers.
Cameron was the the leasehold proprietor of a 2 bedroom flat in Meliden on the market with a lease of a little over sixty years unexpired. Cameron on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert advice and secured satisfactory deal informally and sell the flat.
In 2014 we were called by Dr Tia Leroy who, having bought a recently refurbished apartment in Meliden in March 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar premises in Meliden with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish in 2095. Considering the 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
In 2009 we were contacted by Dr K Green who, having completed a first floor flat in Meliden in June 2006. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative residencies in Meliden with 100 year plus lease were worth £223,400. The mid-range ground rent payable was £60 invoiced per annum. The lease came to a finish on 7 November 2084. Taking into account 59 years remaining we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus costs.