As the the remaining lease term of a Messingham residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 100 years to run then this decrease may be of little impact however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Messingham will qualify for this right; however a conveyancer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Messingham with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The conveyancing solicitors that we work with handle Messingham 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.
Off the back of lengthy correspondence with the freeholder of her studio apartment in Messingham, Lucy started the lease extension process just as her lease was nearing the crucial eighty-year deadline. The legal work was finalised in January 2012. The landlord’s costs were restricted to less than 550 pounds.
Mrs Ashleigh Díaz took over the lease of a studio flat in Messingham in January 2001. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Identical properties in Messingham with a long lease were in the region of £250,000. The average ground rent payable was £50 collected yearly. The lease ended in 2094. Considering the 69 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Christmas we were phoned by Mr James Norbert , who bought a one bedroom apartment in Messingham in August 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar residencies in Messingham with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £55 billed per annum. The lease ran out on 3 May 2105. Taking into account 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.