The closer a domestic lease in Mansfield Woodhouse gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 99 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years left 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 rational as to why you should extend the lease without delay. Many flat owners in Mansfield Woodhouse will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Mansfield Woodhouse,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mansfield Woodhouse valuers.
In recent months Lewis, came very near to the eighty-year mark with the lease on his purpose- built apartment in Mansfield Woodhouse. In buying his property two decades ago, the length of the lease was of no relevance. Luckily, he recognised he needed to take action soon on a lease extension. Lewis was able to extend his lease at the eleventh hour last January. Lewis and the freeholder in the end settled on the final figure of £5,000 . If the lease had slid to less than 80 years, the amount would have increased by at least £925.
Dr F Campbell was assigned a lease of a basement flat in Mansfield Woodhouse in January 2002. We are asked if we could estimate the price would be for a ninety year lease extension. Identical properties in Mansfield Woodhouse with 100 year plus lease were valued around £183,600. The mid-range amount of ground rent was £65 billed monthly. The lease concluded on 22 March 2083. Considering the 57 years left we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.
Mr and Mrs. R González took over the lease of a ground floor flat in Mansfield Woodhouse in April 2009. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical homes in Mansfield Woodhouse with a long lease were worth £245,000. The average amount of ground rent was £45 billed every twelve months. The lease concluded on 23 October 2094. Having 68 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.