The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Mexborough may extend the lease for an additional 90 years in accordance with legislation. Please think carefully before delaying your Mexborough lease extension. Postponing that expense now simply escalates the premium you will eventually be required to pay for a lease extension.
Leasehold premises in Mexborough with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
The conveyancing solicitors that we work with undertake Mexborough 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.
Muhammad was the the leasehold proprietor of a 2 bedroom flat in Mexborough being marketed with a lease of fraction over 59 years left. Muhammad informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2014 we were phoned by Mr and Mrs. A Campbell who, having took over the lease of a purpose-built flat in Mexborough in November 1998. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable properties in Mexborough with an extended lease were worth £285,000. The average amount of ground rent was £45 invoiced every twelve months. The lease termination date was in 2097. Considering the 71 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Mr and Mrs. C Johnson moved into a garden apartment in Mexborough in March 2007. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Mexborough with an extended lease were in the region of £225,800. The average amount of ground rent was £60 collected per annum. The lease terminated on 18 September 2086. Given that there were 60 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 not including fees.