When it comes to residential leasehold property in Melton Constable, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years remaining. Anyone in Melton Constable with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has under 80 years outstanding, under the current legislation the freeholder can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Melton Constable,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Melton Constable valuers.
James was the the leasehold owner of a high value apartment in Melton Constable on the market with a lease of a little over 59 years unexpired. James on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were James to invoke his statutory right. James procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
Last year we were contacted by Ms Morgan Young , who completed a one bedroom flat in Melton Constable in February 2005. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Melton Constable with a long lease were valued about £218,400. The average ground rent payable was £60 invoiced every twelve months. The lease concluded in 2085. Taking into account 59 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of expenses.
Mrs U Sánchez owned a one bedroom apartment in Melton Constable in October 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Melton Constable with a long lease were valued around £205,000. The average ground rent payable was £50 collected monthly. The lease ran out in 2105. Taking into account 79 years left we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.