Unfortunately that a Mexborough and Swinton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Mexborough and Swinton property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' on top of 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 Mexborough and Swinton will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Mexborough and Swinton with more than 100 years left on the lease are sometimes 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Mexborough and Swinton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mexborough and Swinton valuers.
During the course of the last few months Liam, came very near to the eighty-year mark with the lease on his leasehold apartment in Mexborough and Swinton. Having bought his flat two decades ago, the length of the lease was of little interest. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Liam arranged for a lease extension just ahead of time in March. Liam and the freeholder via the management company eventually agreed on an amount of £5,500 . If the lease had slid below eighty years, the sum would have become more costly by a minimum £1,150.
In 2010 we were called by Ms Ellen Ward who, having moved into a one bedroom apartment in Mexborough and Swinton in April 2007. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative residencies in Mexborough and Swinton with an extended lease were worth £250,400. The mid-range ground rent payable was £65 invoiced annually. The lease terminated in 2090. Considering the 64 years remaining we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including costs.
Last Summer we were approach by Mr and Mrs. N Thomas , who acquired a studio apartment in Mexborough and Swinton in May 1998. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar residencies in Mexborough and Swinton with an extended lease were valued around £189,000. The mid-range amount of ground rent was £55 collected yearly. The lease expiry date was in 2079. Taking into account 53 years left we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.