With a residential leasehold property in Melton Mowbray, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Melton Mowbray with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below eighty years remaining, under the relevant legislation the landlord is entitled to calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, 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 should be declined (see exception below). 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; |
| Coventry Building Society | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Using our service gives you better 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 conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Cameron was the the leasehold owner of a conversion flat in Melton Mowbray being marketed with a lease of fraction over fifty eight years remaining. Cameron informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Cameron to exercise his statutory right. Cameron procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2013 we were e-mailed by Ms Grace Evans who, having completed a ground floor flat in Melton Mowbray in May 1995. The question was if we could estimate the price could be to prolong the lease by 90 years. Comparable premises in Melton Mowbray with an extended lease were valued about £181,600. The mid-range ground rent payable was £55 collected every twelve months. The lease lapsed in 2078. Considering the 52 years unexpired we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including legals.
Mrs I Kelly bought a one bedroom flat in Melton Mowbray in April 2004. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar premises in Melton Mowbray with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 collected per annum. The lease elapsed in 2098. Considering the 72 years as a residual term we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 not including costs.