Melton Constable leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Melton Constable enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Melton Constable you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Melton Constable leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Leon, came perilously close to the 80-year threshold with the lease on his first floor flat in Melton Constable. Having bought his property two decades ago, the length of the lease was of minimal concern. Fortunately, he realised he needed to take steps soon on a lease extension. Leon arranged for a lease extension just ahead of time in August. Leon and the landlord who owned the flat above eventually settled on a premium of £5,000 . If he failed to meet the deadline, the sum would have gone up by at least £875.
Last Autumn we were contacted by Ms L Khan , who purchased a purpose-built flat in Melton Constable in April 2002. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative properties in Melton Constable with a long lease were in the region of £208,600. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out on 22 November 2083. Taking into account 57 years unexpired we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus fees.
Last April we were e-mailed by Dr Y Morgan , who moved into a ground floor flat in Melton Constable in May 2011. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar flats in Melton Constable with an extended lease were valued around £200,000. The average ground rent payable was £50 collected yearly. The lease came to a finish on 16 March 2103. Given that there were 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.