The closer a domestic lease in Mansfield Woodhouse nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Mansfield Woodhouse will qualify for this right; however a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Mansfield Woodhouse with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Mansfield Woodhouse 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 lawyer we work with provide it.
Off the back of unsuccessful correspondence with the landlord of her first floor apartment in Mansfield Woodhouse, Ellen commenced the lease extension process as the eighty year mark was fast coming. The transaction was finalised in April 2005. The freeholder’s costs were negotiated to under 550 pounds.
Mrs T Phillips bought a basement flat in Mansfield Woodhouse in March 2003. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Mansfield Woodhouse with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish on 26 August 2075. Considering the 50 years as a residual term we estimated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including costs.
Last Christmas we were e-mailed by Mr and Mrs. B Scott , who purchased a basement apartment in Mansfield Woodhouse in February 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Mansfield Woodhouse with 100 year plus lease were valued about £203,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expired on 27 July 2086. Having 61 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of expenses.