The closer a domestic lease in Mansfield nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Mansfield will qualify for this right; nevertheless a lawyer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
Lease extensions in Mansfield can be a difficult process. We recommend you obtain professional help from a conveyancer 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 dealing with Mansfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jayden owned a high value flat in Mansfield on the market with a lease of a few days over 61 years remaining. Jayden on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert advice and secured satisfactory deal informally and sell the property.
Last Spring we were e-mailed by Dr Katie King , who bought a ground floor apartment in Mansfield in July 1996. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Comparative homes in Mansfield with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease expired on 3 January 2079. Given that there were 54 years outstanding we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus legals.
Last Autumn we were e-mailed by Mr and Mrs. J Richardson , who completed a one bedroom apartment in Mansfield in May 2005. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Comparative flats in Mansfield with a long lease were valued about £227,800. The mid-range ground rent payable was £45 billed yearly. The lease elapsed in 2090. Given that there were 65 years left we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.