Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Melton Mowbray. Inevitably, the term of lease left reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Melton Mowbray have the right to extend the lease for a further 90 years in accordance with legislation. Do give careful deliberation before putting off your Melton Mowbray lease extension. Holding 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 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Melton Mowbray can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Melton Mowbray lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Teddy, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Melton Mowbray. In buying his home two decades ago, the lease term was of no bearing. Thankfully, he realised he needed to take steps soon on Extending the lease. Teddy extended the lease just ahead of time in September. Teddy and the freeholder in the end agreed on an amount of £5,500 . If he failed to meet the deadline, the amount would have gone up by at least £950.
Last Winter we were approach by Mrs O Laurent , who moved into a first floor flat in Melton Mowbray in October 2011. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical residencies in Melton Mowbray with an extended lease were worth £216,000. The average amount of ground rent was £60 invoiced yearly. The lease ended on 5 September 2084. Taking into account 58 years unexpired we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.
Last Summer we were phoned by Mr and Mrs. U Taylor , who was assigned a lease of a one bedroom apartment in Melton Mowbray in September 2004. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical properties in Melton Mowbray with a long lease were worth £205,000. The average amount of ground rent was £50 collected quarterly. The lease elapsed on 23 November 2104. Considering the 78 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.