Unfortunately that a Mansfield residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Mansfield property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Mansfield will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Mansfield with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| TSB |
Lease extensions in Mansfield can be a difficult process. We recommend you secure guidance from a lawyer 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 procuring Mansfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan was the the leasehold proprietor of a studio apartment in Mansfield on the market with a lease of just over sixty years unexpired. Nathan on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Nathan to invoke his statutory right. Nathan obtained expert legal guidance and secured an acceptable resolution informally and sell the flat.
Last month we were contacted by Dr Sophie Edwards , who moved into a basement flat in Mansfield in October 1995. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Mansfield with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease termination date was on 6 June 2097. Considering the 71 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2009 we were approached by Mr I Lefèvre who, having acquired a basement apartment in Mansfield in January 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Mansfield with a long lease were valued around £249,200. The mid-range amount of ground rent was £60 billed per annum. The lease expiry date was on 11 October 2077. Given that there were 51 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £42,800 and £49,400 plus expenses.