When it comes to long leasehold property in Mablethorpe, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Mablethorpe with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has below 80 years remaining, under the relevant legislation the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Mablethorpe with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Mablethorpe,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mablethorpe valuers.
Trailing unsuccessful negotiations with the landlord of her purpose-built flat in Mablethorpe, Amy started the lease extension process as the 80 year deadline was swiftly coming. The transaction completed in October 2014. The landlord’s charges were restricted to about 450 GBP.
In 2013 we were approached by Dr A Davis who, having completed a first floor apartment in Mablethorpe in September 2009. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative premises in Mablethorpe with a long lease were valued around £250,400. The mid-range ground rent payable was £65 invoiced per annum. The lease concluded in 2090. Taking into account 64 years outstanding we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus costs.
In 2011 we were contacted by Dr Jackson Bernard who, having acquired a first floor apartment in Mablethorpe in January 2010. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar premises in Mablethorpe with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 collected quarterly. The lease ran out in 2079. Considering the 53 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.