Messingham leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Messingham will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Messingham can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Messingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Logan, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Messingham. Having purchased his flat two decades ago, the lease term was of no importance. by good luck, he noticed he needed to take action soon on a lease extension. Logan arranged for a lease extension at the eleventh hour in March. Logan and the landlord who owned the flat above in the end agreed on a premium of £6,000 . If he had missed the deadline, the price would have gone up by a minimum £1,125.
Dr Noah Ramírez moved into a studio flat in Messingham in May 2012. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Messingham with a long lease were worth £183,600. The average amount of ground rent was £65 billed annually. The lease expired in 2082. Taking into account 57 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including professional charges.
In 2012 we were approached by Mr and Mrs. I Lewis who, having completed a ground floor apartment in Messingham in June 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Messingham with an extended lease were worth £245,000. The average ground rent payable was £50 billed quarterly. The lease lapsed on 19 August 2093. Given that there were 68 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.