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 more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Mudeford can be a difficult process. We recommend you secure guidance from a lawyer 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 a wealth of experience 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.
Eli was the the leasehold owner of a 2 bedroom apartment in Mudeford being sold with a lease of fraction over fifty eight years left. Eli on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Eli to exercise his statutory right. Eli obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2012 we were contacted by Dr Jayden Rivera who, having moved into a recently refurbished flat in Mudeford in October 1999. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Mudeford with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 collected per annum. The lease elapsed on 3 November 2098. Having 73 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. T Lefebvre completed a first floor apartment in Mudeford in August 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Mudeford with a long lease were worth £264,000. The mid-range amount of ground rent was £60 collected quarterly. The lease termination date was on 12 May 2078. Given that there were 53 years unexpired we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including expenses.