The market value of a leasehold property in Mawsley is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years remaining so that a lease extension can be concluded in advance of the eighty year mark. Leasehold Reform legislation entitles Mawsley qualifying lessees to an additional term of 90 years on top of the existing term, at a notional rent (zero ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Mawsley with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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 be at least 30 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Mawsley can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Mawsley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Isaac, came precariously near to the 80-year threshold with the lease on his purpose- built flat in Mawsley. In buying his property 18 years ago, the lease term was of minimal significance. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. Isaac extended the lease just under the wire in May. Isaac and the freeholder subsequently agreed on an amount of £6,000 . If he not met the deadline, the price would have increased by at least £1,025.
In 2013 we were approached by Mr and Mrs. R Morel who, having moved into a one bedroom flat in Mawsley in November 2004. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Mawsley with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 billed quarterly. The lease concluded on 7 July 2085. Having 59 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus professional charges.
Dr Alexandra Bonnet was assigned a lease of a garden apartment in Mawsley in November 2004. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable residencies in Mawsley with an extended lease were valued around £205,000. The average ground rent payable was £50 collected yearly. The lease termination date was in 2105. Having 79 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.