Mawsley leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Mawsley will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Mawsley with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Mawsley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mawsley valuers.
Leo owned a studio apartment in Mawsley being marketed with a lease of just over 61 years left. Leo informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Mr Felix Williams moved into a one bedroom flat in Mawsley in April 2001. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparable homes in Mawsley with a long lease were valued about £200,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out on 10 September 2104. Given that there were 78 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.
In 2010 we were e-mailed by Mr and Mrs. P Lefèvre who, having purchased a first floor apartment in Mawsley in June 2006. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable flats in Mawsley with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed monthly. The lease lapsed in 2093. Considering the 67 years unexpired we estimated the premium to the landlord for the lease extension to be within £14,300 and £16,400 not including costs.