With a residential leasehold property in Meliden, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years left. Anyone in Meliden with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under eighty years remaining, under the current legislation the landlord can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Meliden with in excess of 100 years unexpired 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Regardless of whether you are a tenant or a freeholder in Meliden,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Meliden valuers.
Subsequent to protracted negotiations with the freeholder of her first floor apartment in Meliden, Emily initiated the lease extension process as the eighty year threshold was rapidly nearing. The transaction was concluded in September 2005. The landlord’s charges were negotiated to less than 650 pounds.
In 2014 we were e-mailed by Mr and Mrs. V King who, having completed a one bedroom apartment in Meliden in August 1999. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable properties in Meliden with a long lease were worth £290,000. The average amount of ground rent was £45 billed per annum. The lease ran out on 22 September 2098. Given that there were 73 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Last Winter we were phoned by Mr Nathaniel James , who purchased a one bedroom apartment in Meliden in November 2005. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative flats in Meliden with a long lease were in the region of £240,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease expired in 2087. Having 62 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.