It’s a harsh certainty that a Melbourn residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Melbourn property prices.Where your lease has approximately ninety years left, you need to start considering 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 slips under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Melbourn will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Melbourn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Mason was the the leasehold owner of a 2 bedroom apartment in Melbourn on the market with a lease of a little over fifty eight years unexpired. Mason on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and secured satisfactory deal informally and sell the flat.
Mr Blake Morgan acquired a one bedroom flat in Melbourn in November 2005. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative flats in Melbourn with a long lease were valued around £260,000. The mid-range amount of ground rent was £50 collected yearly. The lease concluded in 2098. Having 72 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last Spring we were e-mailed by Mrs Poppy Watson , who completed a garden flat in Melbourn in January 2007. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Melbourn with an extended lease were in the region of £256,600. The average amount of ground rent was £60 collected annually. The lease ran out on 25 March 2078. Considering the 52 years remaining we estimated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 plus expenses.