Mickleover residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold properties in Mickleover with in excess of one hundred 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 freehold unless savings on ground rent and maintenance 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with handle Mickleover 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 conveyancer we work with provide it.
Cameron owned a 2 bedroom flat in Mickleover being sold with a lease of a little over fifty eight years left. Cameron on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Cameron to invoke his statutory right. Cameron procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Dr Chelsea Brown owned a newly refurbished apartment in Mickleover in October 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar premises in Mickleover with a long lease were valued around £285,000. The average ground rent payable was £45 billed quarterly. The lease finished in 2097. Having 72 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
Mrs Isabelle Ramírez was assigned a lease of a purpose-built apartment in Mickleover in July 1997. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Mickleover with a long lease were worth £233,200. The mid-range amount of ground rent was £60 billed annually. The lease expired on 11 March 2086. Given that there were 61 years left we approximated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus costs.