When it comes to domestic leasehold premises in Mayfield, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Residents in Mayfield with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When a lease has below 80 years left, under the relevant statute the landlord can calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Mayfield with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Mayfield,the lease extension solicitors 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 Mayfield valuers.
After unsuccessful discussions with the freeholder of her first floor apartment in Mayfield, Francesca commenced the lease extension process just as the lease was coming close to the critical eighty-year deadline. The transaction was finalised in August 2008. The freeholder’s charges were negotiated to below 550 pounds.
Last Winter we were called by Mr and Mrs. S Vincent , who acquired a first floor apartment in Mayfield in October 2008. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Mayfield with an extended lease were valued around £191,400. The mid-range amount of ground rent was £55 collected annually. The lease elapsed in 2080. Having 54 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of professional charges.
Mr and Mrs. F Green moved into a newly refurbished flat in Mayfield in July 2001. The question was if we could approximate the premium could be to prolong the lease by an additional years. Similar residencies in Mayfield with an extended lease were valued around £295,000. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed in 2100. Considering the 74 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.