When it comes to residential leasehold premises in Melbourn, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Anyone in Melbourn with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has under 80 years remaining, under the relevant Act the freeholder can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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.
Michael was the the leasehold proprietor of a studio flat in Melbourn on the market with a lease of a little over 59 years left. Michael informally approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Michael to invoke his statutory right. Michael obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2010 we were approached by Dr Jayden Wood who, having moved into a purpose-built apartment in Melbourn in October 1995. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Identical flats in Melbourn with a long lease were in the region of £220,400. The average ground rent payable was £45 billed monthly. The lease concluded on 13 April 2090. Taking into account 64 years outstanding we estimated the premium to the landlord for the lease extension to be within £16,200 and £18,600 plus legals.
In 2011 we were approached by Ms Danielle Martinez who, having purchased a one bedroom apartment in Melbourn in September 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Melbourn with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease expired on 21 May 2101. Considering the 75 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.