With a long leasehold premises 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 may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years left. Anyone in Meliden with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. When a lease has under eighty years left, under the relevant Act the freeholder can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Meliden can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Meliden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alfie was the the leasehold proprietor of a conversion flat in Meliden being marketed with a lease of a little over 72 years unexpired. Alfie informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Mr and Mrs. T Moore who, having took over the lease of a newly refurbished apartment in Meliden in September 1999. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar flats in Meliden with an extended lease were valued around £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease ended on 12 July 2099. Considering the 74 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
Dr Leo Walker was assigned a lease of a basement apartment in Meliden in January 2012. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Similar flats in Meliden with a long lease were worth £248,000. The mid-range amount of ground rent was £65 collected annually. The lease expired in 2088. Having 63 years unexpired we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including costs.