The closer a domestic lease in Meliden gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner rather than later. The majority of flat owners in Meliden will meet the qualifying criteria; that being said a conveyancer will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Meliden with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|Chelsea 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.|
|Santander|| You must report the unexpired lease term to us and await our instructions if: |
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis
We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
The conveyancing solicitors that we work with undertake Meliden 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 lawyer we work with provide it.
In recent months Evan, started to get close to the eighty-year threshold with the lease on his first floor flat in Meliden. In buying his home 19 years ago, the unexpired term was of no interest. by good luck, he recognised he needed to take steps soon on Extending the lease. Evan extended the lease just in the nick of time last June. Evan and the freeholder subsequently agreed on sum of £5,500 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,025.
Last January we were phoned by Dr Hollie Morgan , who purchased a one bedroom flat in Meliden in August 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar homes in Meliden with a long lease were valued about £285,000. The average ground rent payable was £45 billed yearly. The lease ran out in 2092. Having 71 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
In 2014 we were phoned by Mr Stanley Nguyen who, having purchased a studio flat in Meliden in April 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Meliden with an extended lease were worth £225,800. The mid-range ground rent payable was £60 collected every twelve months. The lease finished in 2081. Having 60 years left we calculated the compensation to the landlord for the lease extension to be within £25,700 and £29,600 plus costs.