The market value of a leasehold property in Mickleover depends on how long the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded ahead of the eighty year threshold. Leasehold Reform legislation entitles Mickleover qualifying lessees to an additional term of ninety years on top of the existing term, at a notional rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Mickleover can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Mickleover lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jack owned a studio flat in Mickleover being sold with a lease of just over sixty years remaining. Jack informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2009 we were approached by Mr and Mrs. K James who, having was assigned a lease of a studio apartment in Mickleover in June 2003. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar residencies in Mickleover with an extended lease were worth £285,000. The mid-range ground rent payable was £45 billed monthly. The lease terminated on 1 July 2096. Given that there were 71 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Dr Sarah García was assigned a lease of a purpose-built flat in Mickleover in May 2008. The question was if we could estimate the price could be to extend the lease by 90 years. Similar flats in Mickleover with an extended lease were in the region of £225,800. The average amount of ground rent was £60 billed quarterly. The lease concluded on 1 June 2085. Having 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £25,700 and £29,600 not including expenses.