With a long leasehold property in Mansfield, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Residents in Mansfield with a lease nearing 81 years remaining should seriously consider extending it without delay. Once the lease term has less than 80 years remaining, under the relevant Act the landlord can calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service will provide you increased control over the value of your Mansfield leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her studio flat in Mansfield, Alexandra started the lease extension process as the 80 year mark was quickly advancing. The lease extension was finalised in August 2013. The freeholder’s fees were restricted to under 600 GBP.
Mrs K Collins bought a ground floor flat in Mansfield in March 2001. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Mansfield with a long lease were valued around £280,000. The mid-range amount of ground rent was £55 collected annually. The lease expiry date was in 2104. Having 78 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
Ms Ellen Davis moved into a one bedroom flat in Mansfield in May 1998. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Identical premises in Mansfield with an extended lease were valued around £186,000. The average amount of ground rent was £65 billed per annum. The lease ran out in 2084. Given that there were 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of expenses.