Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Meliden. Inevitably, the term of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Meliden have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give careful deliberation before delaying your Meliden lease extension. Holding off that expense now simply increases the price you will eventually have to pay for a lease extension
Leasehold properties in Meliden with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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 |
| 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. |
Engaging our service will provide you increased control over the value of your Meliden leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Eliot, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Meliden. In buying his home twenty years previously, the unexpired term was of minimal relevance. Fortunately, he recognised he needed to take action soon on a lease extension. Eliot arranged for a lease extension just under the wire in September. Eliot and the freeholder in the end agreed on a premium of £5,500 . If the lease had slid lower than 80 years, the premium would have become more costly by at least £925.
Last Summer we were contacted by Dr Joshua Clarke , who acquired a one bedroom flat in Meliden in April 2006. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Meliden with an extended lease were worth £257,800. The average ground rent payable was £65 invoiced per annum. The lease finished in 2091. Considering the 65 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including legals.
Last July we were approach by Mr and Mrs. L Khan , who bought a one bedroom apartment in Meliden in July 1997. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Meliden with 100 year plus lease were worth £196,400. The mid-range amount of ground rent was £55 collected yearly. The lease ended in 2080. Having 54 years left we calculated the compensation to the freeholder to extend the lease to be within £35,200 and £40,600 not including expenses.