Mayfield leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Mayfield will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and steps to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Mayfield with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Mayfield leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the freeholder of her one bedroom apartment in Mayfield, Paige commenced the lease extension process just as her lease was nearing the crucial 80-year threshold. The transaction completed in November 2009. The freeholder’s charges were restricted to less than 550 GBP.
In 2010 we were phoned by Mr Samuel Murphy who, having purchased a first floor apartment in Mayfield in February 1995. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable properties in Mayfield with an extended lease were valued around £200,000. The average ground rent payable was £50 invoiced per annum. The lease ran out in 2103. Given that there were 77 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
Mr and Mrs. H Carter owned a one bedroom apartment in Mayfield in July 2008. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Identical homes in Mayfield with 100 year plus lease were valued about £260,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expired in 2092. Taking into account 66 years remaining we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 plus fees.