It’s a harsh truth that a Mayfield residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Mayfield property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. The majority of flat owners in Mayfield will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Mayfield with in excess of one hundred years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Mayfield leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Connor, came critically near to the eighty-year mark with the lease on his one bedroom apartment in Mayfield. Having bought his flat twenty years ago, the unexpired term was of little concern. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Connor was able to extend his lease just under the wire last August. Connor and the freeholder in the end settled on a premium of £5,000 . If the lease had gone lower than eighty years, the sum would have increased by at least £1,000.
Mr and Mrs. O Baker owned a newly refurbished apartment in Mayfield in July 1995. The question was if we could estimate the price would be for a 90 year lease extension. Similar premises in Mayfield with a long lease were worth £290,000. The average amount of ground rent was £45 collected per annum. The lease concluded on 14 August 2099. Taking into account 73 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
In 2011 we were approached by Mr and Mrs. O Girard who, having bought a studio flat in Mayfield in October 2003. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Comparable residencies in Mayfield with an extended lease were valued about £235,600. The mid-range ground rent payable was £60 collected annually. The lease terminated in 2088. Having 62 years as a residual term we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of fees.