The re-sale value of a leasehold property in Melton Constable depends on how long the lease has remaining. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed well before the eighty year mark. Statute enables Melton Constable qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Melton Constable with over one hundred years remaining 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Retaining our service gives you enhanced control over the value of your Melton Constable leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel was the the leasehold proprietor of a high value apartment in Melton Constable being marketed with a lease of just over fifty eight years remaining. Gabriel on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert advice and secured an acceptable resolution informally and sell the flat.
Last year we were approach by Dr Jack Ward , who acquired a one bedroom apartment in Melton Constable in May 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Melton Constable with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed per annum. The lease end date was on 14 September 2102. Considering the 76 years left we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
Last November we were phoned by Dr Kyle Kelly , who purchased a garden flat in Melton Constable in June 1995. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Similar homes in Melton Constable with a long lease were worth £257,800. The mid-range amount of ground rent was £65 collected yearly. The lease concluded on 6 August 2091. Considering the 65 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 plus professional charges.