It’s a harsh truth that a Melton Mowbray residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Melton Mowbray property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Melton Mowbray will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Melton Mowbray,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Melton Mowbray valuers.
16 months ago Daniel, started to get near to the eighty-year mark with the lease on his ground floor apartment in Melton Mowbray. Having bought his flat twenty years ago, the lease term was of little interest. As luck would have it, he noticed he would soon be paying way over the odds for Extending the lease. Daniel extended the lease at the eleventh hour in June. Daniel and the freeholder via the managing agents eventually settled on an amount of £5,500 . If he failed to meet the deadline, the sum would have gone up by at least £1,150.
Mr and Mrs. W Garcia bought a basement apartment in Melton Mowbray in September 2010. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative homes in Melton Mowbray with an extended lease were worth £275,000. The mid-range ground rent payable was £65 collected per annum. The lease elapsed on 22 November 2094. Having 68 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
Mr K Johnson bought a garden flat in Melton Mowbray in February 2007. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Comparative residencies in Melton Mowbray with 100 year plus lease were valued about £208,600. The average ground rent payable was £60 collected monthly. The lease expired on 16 February 2083. Taking into account 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including costs.