Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Melton Mowbray. Clearly, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Melton Mowbray have the legal entitlement to extend the lease for an additional ninety years under legislation. You should give due consideration before putting off your Melton Mowbray lease extension. Putting off that expense now simply increases the price you will ultimately incur to extend your lease
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Melton Mowbray leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Callum, started to get near to the 80-year threshold with the lease on his ground floor flat in Melton Mowbray. In buying his property 18 years ago, the unexpired term was of minimal interest. Luckily, he recognised he needed to take action soon on a lease extension. Callum was able to extend his lease just under the wire in January. Callum and the freeholder via the managing agents in the end settled on an amount of £6,000 . If he had missed the deadline, the premium would have escalated by a minimum £925.
Last Autumn we were contacted by Dr Jessica Bell , who moved into a garden flat in Melton Mowbray in July 2011. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar homes in Melton Mowbray with an extended lease were worth £210,000. The average ground rent payable was £50 collected yearly. The lease expiry date was on 6 April 2106. Given that there were 80 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
In 2014 we were called by Dr Felix Kelly who, having moved into a purpose-built apartment in Melton Mowbray in January 2005. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable premises in Melton Mowbray with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced monthly. The lease finished in 2095. Given that there were 69 years left we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.