For those whose Long Melford property is held on a long lease, the message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Long Melford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Ben was the the leasehold proprietor of a high value flat in Long Melford on the market with a lease of fraction over 72 years unexpired. Ben on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Ben to exercise his statutory right. Ben procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last Christmas we were e-mailed by Mr and Mrs. M Martinez , who took over the lease of a one bedroom apartment in Long Melford in April 2005. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Long Melford with a long lease were valued about £265,000. The mid-range ground rent payable was £50 collected monthly. The lease expired in 2098. Given that there were 73 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Last Christmas we were phoned by Mr Dylan David , who purchased a basement apartment in Long Melford in March 2011. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable residencies in Long Melford with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease came to a finish on 19 September 2078. Given that there were 53 years unexpired we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 plus costs.