Chances are that where you own a flat in Mawsley you actually own a long leasehold interest over your property
Leasehold residencies in Mawsley with over 100 years unexpired on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Mawsley leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Eliot owned a high value flat in Mawsley being sold with a lease of fraction over 72 years remaining. Eliot on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.
Last September we were approach by Mr Elijah Girard , who moved into a basement flat in Mawsley in October 2005. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable premises in Mawsley with an extended lease were valued about £208,600. The average amount of ground rent was £60 collected monthly. The lease concluded in 2082. Considering the 57 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of legals.
Mr and Mrs. A Bell purchased a one bedroom flat in Mawsley in September 2008. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar flats in Mawsley with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ended in 2102. Given that there were 77 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.