As the length of the unexpired term of a Mexborough and Swinton domestic lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Mexborough and Swinton will qualify for this right; however a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Mexborough and Swinton with over one hundred years remaining on the lease are often regarded as a ‘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 freehold 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Mexborough and Swinton can be a difficult process. We recommend you secure professional help 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 procuring Mexborough and Swinton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the landlord of her garden apartment in Mexborough and Swinton, Lauren started the lease extension process as the eighty year deadline was fast coming. The transaction was finalised in February 2006. The freeholder’s fees were negotiated to slightly above six hundred pounds.
In 2010 we were approached by Mr and Mrs. C Davis who, having bought a one bedroom flat in Mexborough and Swinton in September 1998. The question was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable premises in Mexborough and Swinton with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease concluded on 14 September 2099. Taking into account 74 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2011 we were called by Dr Finn Mason who, having was assigned a lease of a first floor flat in Mexborough and Swinton in July 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative flats in Mexborough and Swinton with an extended lease were worth £243,000. The average ground rent payable was £65 collected per annum. The lease ran out in 2088. Given that there were 63 years left we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.