Melbourn residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold premises in Melbourn with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 service charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Melbourn can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Melbourn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the freeholder of her leasehold flat in Melbourn, Maisie started the lease extension process as the 80 year deadline was rapidly nearing. The transaction completed in April 2007. The landlord’s charges were restricted to about 700 GBP.
Mrs Sophia Pérez bought a basement flat in Melbourn in October 1995. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Similar premises in Melbourn with an extended lease were valued around £246,800. The mid-range amount of ground rent was £60 collected yearly. The lease expired in 2075. Given that there were 50 years outstanding we approximated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including expenses.
In 2010 we were called by Mr and Mrs. R Wilson who, having moved into a first floor flat in Melbourn in January 2006. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar premises in Melbourn with a long lease were in the region of £203,200. The average amount of ground rent was £65 collected per annum. The lease terminated on 4 May 2086. Considering the 61 years outstanding we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus legals.