When it comes to domestic leasehold property in Mayfield, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years left. Leasehold owners in Mayfield with a lease nearing 81 years remaining should seriously think of extending it sooner than later. Once a lease has fewer than 80 years remaining, under the relevant legislation the landlord can calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Mayfield,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 Mayfield valuers.
Kyle was the the leasehold proprietor of a high value flat in Mayfield being sold with a lease of just over sixty years remaining. Kyle on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be due on a lease extension were Kyle to exercise his statutory right. Kyle procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
In 2010 we were called by Dr T Clark who, having owned a purpose-built apartment in Mayfield in July 2009. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable flats in Mayfield with 100 year plus lease were valued around £260,200. The average ground rent payable was £65 billed every twelve months. The lease terminated in 2092. Given that there were 66 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of legals.
In 2011 we were called by Ms B Rogers who, having completed a recently refurbished apartment in Mayfield in May 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Mayfield with 100 year plus lease were valued about £198,800. The mid-range amount of ground rent was £55 billed per annum. The lease lapsed in 2081. Having 55 years remaining we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus professional charges.