Melton Mowbray leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Melton Mowbray will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Melton Mowbray with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you better control over the value of your Melton Mowbray leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the landlord of her ground floor flat in Melton Mowbray, Laura initiated the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The transaction completed in October 2014. The freeholder’s charges were negotiated to below 450 pounds.
Last Autumn we were contacted by Mr and Mrs. W Young , who acquired a first floor apartment in Melton Mowbray in August 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable homes in Melton Mowbray with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 billed every twelve months. The lease finished in 2095. Taking into account 70 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
Mr and Mrs. P Turner moved into a studio apartment in Melton Mowbray in August 1999. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical premises in Melton Mowbray with a long lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed annually. The lease expired on 20 September 2084. Considering the 59 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of legals.