Mudeford residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage 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 |
| 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. |
Lease extensions in Mudeford can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Mudeford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Liam, started to get near to the 80-year mark with the lease on his first floor flat in Mudeford. In buying his home twenty years ago, the length of the lease was of no interest. Luckily, he became aware that he needed to take steps soon on a lease extension. Liam extended the lease just under the wire last August. Liam and the freeholder via the management company ultimately agreed on sum of £5,000 . If he failed to meet the deadline, the sum would have increased by a minimum £975.
In 2012 we were phoned by Mr C Lee who, having purchased a studio apartment in Mudeford in January 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparable premises in Mudeford with an extended lease were in the region of £235,200. The average ground rent payable was £45 billed annually. The lease came to a finish in 2092. Having 66 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
In 2009 we were approached by Dr O Adams who, having was assigned a lease of a one bedroom flat in Mudeford in August 1998. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Mudeford with a long lease were in the region of £280,000. The average ground rent payable was £55 billed yearly. The lease elapsed in 2103. Given that there were 77 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.