Mapperley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Mapperley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Mapperley you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Mapperley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mapperley valuers.
Two years ago Freddie, started to get close to the eighty-year threshold with the lease on his ground floor flat in Mapperley. In buying his flat two decades ago, the lease term was of minimal relevance. by good luck, he recognised he needed to take steps soon on a lease extension. Freddie extended the lease at the eleventh hour in March. Freddie and the freeholder ultimately agreed on an amount of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £1,150.
In 2009 we were contacted by Dr Evan Adams who, having moved into a purpose-built apartment in Mapperley in March 1995. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative residencies in Mapperley with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed per annum. The lease ran out in 2088. Having 63 years left we estimated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus expenses.
In 2009 we were e-mailed by Dr R Peterson who, having owned a basement flat in Mapperley in November 1997. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar flats in Mapperley with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish on 1 April 2099. Given that there were 74 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.