Unfortunately that a Long Melford residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Long Melford property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. The majority of flat owners in Long Melford will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Long Melford can be a difficult process. We recommend you obtain 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 in-depth market knowledge dealing with Long Melford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo owned a studio flat in Long Melford being marketed with a lease of a few days over sixty years unexpired. Milo informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo procured expert advice and secured satisfactory deal informally and sell the flat.
In 2010 we were contacted by Mr and Mrs. I Collins who, having was assigned a lease of a one bedroom apartment in Long Melford in January 2012. The question was if we could approximate the price could be for a 90 year lease extension. Comparative flats in Long Melford with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease ran out on 28 January 2077. Given that there were 51 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of costs.
Last Christmas we were contacted by Mr and Mrs. U Brown , who moved into a garden flat in Long Melford in September 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Identical flats in Long Melford with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out in 2088. Given that there were 62 years unexpired we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of fees.