Mawsley residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
Leasehold residencies in Mawsley with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Yorkshire 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. |
Lease extensions in Mawsley can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
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.
Archie was the the leasehold owner of a 2 bedroom flat in Mawsley on the market with a lease of just over 61 years remaining. Archie informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Archie to exercise his statutory right. Archie procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Christmas we were phoned by Dr Jessica Bertrand , who purchased a basement apartment in Mawsley in August 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable homes in Mawsley with 100 year plus lease were valued around £191,400. The average ground rent payable was £55 invoiced yearly. The lease finished in 2080. Taking into account 54 years outstanding we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including legals.
In 2009 we were e-mailed by Mr F Clarke who, having was assigned a lease of a basement apartment in Mawsley in October 2010. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical homes in Mawsley with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed per annum. The lease terminated in 2100. Having 74 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.