Mexborough and Swinton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Mexborough and Swinton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Mexborough and Swinton you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Mexborough and Swinton with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancers that we work with undertake Mexborough and Swinton 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 conveyancing solicitor we work with provide it.
David owned a 2 bedroom flat in Mexborough and Swinton on the market with a lease of a few days over 72 years left. David on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were David to invoke his statutory right. David obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2014 we were phoned by Mr Dexter Morgan who, having acquired a ground floor flat in Mexborough and Swinton in April 2010. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparative homes in Mexborough and Swinton with a long lease were worth £300,000. The average ground rent payable was £50 billed every twelve months. The lease finished in 2102. Given that there were 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.
Mr Seth Martínez took over the lease of a ground floor apartment in Mexborough and Swinton in April 1996. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable flats in Mexborough and Swinton with a long lease were valued about £257,800. The mid-range ground rent payable was £65 billed yearly. The lease ended on 8 June 2091. Taking into account 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.