Chances are that if you own a flat in Melksham you actually own a long leasehold interest over your property
Leasehold residencies in Melksham with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Melksham can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 Melksham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Sebastian, started to get near to the 80-year mark with the lease on his leasehold flat in Melksham. Having purchased his flat twenty years previously, the unexpired term was of minimal importance. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Sebastian extended the lease just under the wire last May. Sebastian and the freeholder via the management company eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have gone up by at least £1,100.
In 2014 we were called by Mr and Mrs. F Bertrand who, having owned a basement flat in Melksham in October 2008. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical residencies in Melksham with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed every twelve months. The lease lapsed in 2083. Considering the 58 years unexpired we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.
Dr Hugo Cooper acquired a garden flat in Melksham in November 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Similar properties in Melksham with a long lease were worth £200,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded in 2103. Taking into account 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.