The market value of Melbourne leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Melbourne can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 dealing with Melbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Benjamin, came very close to the 80-year threshold with the lease on his two bedroom flat in Melbourne. In buying his flat two decades ago, the unexpired term was of no interest. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Benjamin extended the lease just in the nick of time last January. Benjamin and the freeholder in the end agreed on sum of £6,000 . If he had missed the deadline, the amount would have gone up by a minimum £900.
Last year we were e-mailed by Dr Freddie Martínez , who acquired a recently refurbished flat in Melbourne in June 1997. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable residencies in Melbourne with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease concluded in 2084. Given that there were 58 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.
In 2014 we were contacted by Mr and Mrs. C Scott who, having bought a first floor apartment in Melbourne in October 1999. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative premises in Melbourne with an extended lease were in the region of £205,000. The average ground rent payable was £50 collected quarterly. The lease ended in 2104. Having 78 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 not including professional charges.