The value of Melton Mowbray leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than eighty years
Leasehold premises in Melton Mowbray with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Melton Mowbray leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finley was the the leasehold owner of a conversion flat in Melton Mowbray being sold with a lease of just over 72 years remaining. Finley informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finley to invoke his statutory right. Finley procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2009 we were phoned by Mr Omar Bailey who, having bought a newly refurbished apartment in Melton Mowbray in July 2006. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Melton Mowbray with a long lease were in the region of £191,400. The average amount of ground rent was £55 billed annually. The lease came to a finish on 9 May 2080. Considering the 54 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 not including fees.
In 2009 we were e-mailed by Mrs Sophie Evans who, having took over the lease of a purpose-built apartment in Melton Mowbray in September 1999. We are asked if we could approximate the price would be to extend the lease by 90 years. Similar premises in Melton Mowbray with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 billed monthly. The lease expiry date was in 2100. Taking into account 74 years left we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.