As the length of the unexpired term of a Mawsley residential lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Mawsley will meet the qualifying criteria; however a conveyancer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Mawsley with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society |
The conveyancers that we work with handle Mawsley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing unsuccessful negotiations with the landlord of her first floor flat in Mawsley, Ashleigh started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction was concluded in February 2006. The landlord’s charges were negotiated to below five hundred pounds.
Last Spring we were e-mailed by Dr T Hernández , who bought a one bedroom apartment in Mawsley in August 2005. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable flats in Mawsley with a long lease were valued about £285,000. The average ground rent payable was £45 billed monthly. The lease expiry date was in 2097. Given that there were 71 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
In 2014 we were phoned by Mr and Mrs. A Pérez who, having moved into a one bedroom flat in Mawsley in May 2002. The question was if we could estimate the price could be to prolong the lease by ninety years. Similar properties in Mawsley with a long lease were worth £225,800. The average amount of ground rent was £60 collected quarterly. The lease came to a finish on 25 May 2086. Taking into account 60 years left we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 plus legals.