Mansfield leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Mansfield will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Mansfield with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Mansfield leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Mason, started to get close to the eighty-year mark with the lease on his ground floor flat in Mansfield. Having purchased his property two decades ago, the length of the lease was of little importance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Mason was able to extend his lease just in the nick of time in June. Mason and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If the lease had descended lower than eighty years, the sum would have gone up by at least £1,150.
Last Winter we were approach by Mr and Mrs. A Rodríguez , who took over the lease of a studio flat in Mansfield in January 2010. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Similar residencies in Mansfield with an extended lease were in the region of £203,200. The average amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2086. Given that there were 61 years left we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of expenses.
In 2012 we were contacted by Mr and Mrs. R Johnson who, having took over the lease of a first floor flat in Mansfield in June 2009. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparable homes in Mansfield with a long lease were valued about £260,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed in 2097. Having 72 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.