The value of Melbourn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than eighty years
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Lease extensions in Melbourn can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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 in-depth market knowledge 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.
Off the back of protracted correspondence with the freeholder of her ground floor flat in Melbourn, Emma commenced the lease extension process just as her lease was nearing the all-important eighty-year mark. The legal work completed in June 2015. The landlord’s charges were negotiated to about five hundred GBP.
Last month we were e-mailed by Mr and Mrs. L Mason , who owned a basement apartment in Melbourn in November 2002. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical premises in Melbourn with a long lease were worth £200,800. The mid-range ground rent payable was £65 invoiced monthly. The lease came to a finish on 17 April 2086. Given that there were 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus costs.
Mr H Torres moved into a basement apartment in Melbourn in November 2009. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Similar residencies in Melbourn with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease elapsed on 20 September 2097. Taking into account 71 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.