The re-sale value of a leasehold property in Meopham is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed ahead of the 80 year threshold. Leasehold Reform legislation enables Meopham qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (zero ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Meopham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following unsuccessful discussions with the freeholder of her basement apartment in Meopham, Holly commenced the lease extension process as the 80 year mark was quickly coming. The transaction was finalised in November 2005. The freeholder’s fees were negotiated to below 600 pounds.
Last year we were called by Ms Y Bonnet , who took over the lease of a garden apartment in Meopham in May 2004. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Similar premises in Meopham with an extended lease were worth £213,600. The mid-range ground rent payable was £60 collected annually. The lease ended on 15 October 2083. Taking into account 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus legals.
Ms A Khan purchased a first floor apartment in Meopham in January 1998. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar residencies in Meopham with an extended lease were in the region of £200,000. The average ground rent payable was £50 collected quarterly. The lease ran out in 2103. Having 77 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.