Mansfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Mansfield tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Mansfield you must see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Mansfield with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Mansfield 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.
Toby was the the leasehold owner of a high value flat in Mansfield on the market with a lease of just over sixty years outstanding. Toby on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Ms A Robinson bought a newly refurbished flat in Mansfield in August 2003. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Mansfield with an extended lease were valued around £220,400. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out in 2090. Having 64 years left we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including fees.
Last January we were called by Mr and Mrs. M Norbert , who was assigned a lease of a ground floor flat in Mansfield in June 2008. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Mansfield with a long lease were worth £270,000. The average amount of ground rent was £55 invoiced every twelve months. The lease finished on 16 July 2101. Given that there were 75 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.