As the the remaining lease term of a Mablethorpe domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 125 years to run then this decrease may be negligible however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Mablethorpe will qualify for this right; however a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
Retaining our service will provide you enhanced control over the value of your Mablethorpe leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her first floor flat in Mablethorpe, Yasmin initiated the lease extension process just as the lease was nearing the all-important eighty-year deadline. The legal work was concluded in August 2012. The landlord’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Dr Millie François who, having moved into a recently refurbished flat in Mablethorpe in March 2011. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Mablethorpe with 100 year plus lease were in the region of £179,200. The average amount of ground rent was £55 invoiced per annum. The lease ran out in 2076. Given that there were 51 years left we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus expenses.
Mrs Bethany Rodríguez acquired a first floor apartment in Mablethorpe in August 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical premises in Mablethorpe with an extended lease were valued around £285,000. The average amount of ground rent was £45 billed annually. The lease concluded in 2096. Given that there were 71 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.