It’s an underpublicised truth that a Melling residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Melling property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Melling will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Melling with over one hundred years left on the lease are often referred to as ‘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 freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
The conveyancers that we work with undertake Melling lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing lengthy correspondence with the freeholder of her ground floor flat in Melling, Isobel commenced the lease extension process as the eighty year threshold was fast approaching. The lease extension completed in February 2007. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. K Roberts acquired a garden apartment in Melling in April 1999. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Similar residencies in Melling with an extended lease were in the region of £168,800. The mid-range ground rent payable was £60 collected quarterly. The lease ended in 2081. Having 55 years outstanding we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.
In 2009 we were called by Dr P Pérez who, having purchased a newly refurbished apartment in Melling in May 2007. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Melling with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 billed per annum. The lease ended on 20 May 2092. Given that there were 66 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.