Mawsley leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Mawsley will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Mawsley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mawsley valuers.
Jacob owned a high value flat in Mawsley being sold with a lease of a few days over 59 years left. Jacob informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2011 we were e-mailed by Mr and Mrs. P Hill who, having moved into a basement flat in Mawsley in July 2009. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative residencies in Mawsley with an extended lease were valued around £290,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease lapsed in 2098. Given that there were 73 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
In 2010 we were phoned by Mr and Mrs. W Nguyen who, having bought a first floor flat in Mawsley in April 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Mawsley with an extended lease were valued about £240,600. The average ground rent payable was £60 billed annually. The lease finished in 2087. Considering the 62 years as a residual term we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.