The closer a domestic lease in Mablethorpe gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Most flat owners in Mablethorpe will qualify for this right; however a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Mablethorpe with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 Mablethorpe can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 procuring Mablethorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Mason, started to get close to the eighty-year threshold with the lease on his basement flat in Mablethorpe. Having bought his home 18 years ago, the unexpired term was of minimal significance. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Mason extended the lease just in the nick of time last July. Mason and the freeholder in the end settled on a premium of £6,000 . If the lease had slipped below 80 years, the price would have escalated by at least £925.
In 2009 we were called by Dr Freddie Richardson who, having took over the lease of a one bedroom apartment in Mablethorpe in September 2009. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical homes in Mablethorpe with a long lease were valued around £216,000. The mid-range amount of ground rent was £60 billed yearly. The lease termination date was in 2083. Given that there were 58 years left we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of costs.
Dr K Bell moved into a basement flat in Mablethorpe in September 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Mablethorpe with an extended lease were worth £205,000. The average ground rent payable was £50 collected per annum. The lease ended on 15 February 2103. Given that there were 78 years remaining we estimated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of fees.