Melksham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Melksham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Melksham you should check if your lease has between seventy and ninety years left. There are compelling reasons why a Melksham leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Melksham with over 100 years remaining 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Melksham can be a difficult process. We recommend you secure guidance from a lawyer 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 in-depth market knowledge procuring Melksham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Aarav, came dangerously near to the eighty-year threshold with the lease on his ground floor flat in Melksham. In buying his home 19 years previously, the unexpired term was of little relevance. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Aarav arranged for a lease extension at the eleventh hour in June. Aarav and the landlord in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the figure would have escalated by at least £1,025.
In 2013 we were contacted by Ms J White who, having bought a basement apartment in Melksham in January 2004. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Melksham with 100 year plus lease were valued about £275,000. The average ground rent payable was £65 billed yearly. The lease terminated in 2094. Considering the 68 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2009 we were approached by Dr Isabelle Jones who, having bought a studio flat in Melksham in February 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in Melksham with a long lease were worth £208,600. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish on 12 October 2083. Given that there were 57 years remaining we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including professional charges.