There is no doubt about it a leasehold property in Mexborough is a wasting asset as a result of the diminishing lease term. If the residual term has, over 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Mexborough will qualify for this right; nevertheless a conveyancer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Mexborough with more than 100 years remaining 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 circumstances there is often little to be gained by purchasing 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. |
| 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; |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Mexborough leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Hunter was the the leasehold proprietor of a conversion apartment in Mexborough on the market with a lease of fraction over 61 years remaining. Hunter on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Hunter to exercise his statutory right. Hunter obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were e-mailed by Dr L Bertrand who, having took over the lease of a one bedroom flat in Mexborough in October 1996. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Similar homes in Mexborough with an extended lease were valued about £208,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease came to a finish on 3 March 2083. Considering the 57 years remaining we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including fees.
In 2010 we were e-mailed by Dr O Nguyen who, having bought a one bedroom apartment in Mexborough in September 1998. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative premises in Mexborough with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired in 2103. Considering the 77 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.