Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Melton Constable. Inevitably, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Melton Constable have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful consideration before putting off your Melton Constable lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold premises in Melton Constable with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with procure Melton Constable 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.
Off the back of lengthy discussions with the landlord of her garden apartment in Melton Constable, Sophia started the lease extension process just as her lease was approaching the crucial eighty-year mark. The legal work was finalised in August 2010. The landlord’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mrs D Smith who, having took over the lease of a one bedroom flat in Melton Constable in June 1998. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative homes in Melton Constable with an extended lease were valued about £260,200. The mid-range ground rent payable was £65 invoiced per annum. The lease finished in 2091. Having 66 years left we estimated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus fees.
In 2012 we were e-mailed by Mr and Mrs. G Mercier who, having moved into a garden flat in Melton Constable in January 2007. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Similar residencies in Melton Constable with a long lease were in the region of £198,800. The average amount of ground rent was £55 collected quarterly. The lease elapsed in 2080. Having 55 years outstanding we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.