Why you should commence your Mickleover lease extension
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Main reasons to commence your Mickleover lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/mickleover">Mickleover</a> leasehold property depreciates with the years remaining on the lease.
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<p> The market value of Mickleover leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than 80 years
<h4>Mickleover property with a lease extension has roughly the same value as a freehold</h4>
<p> It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
<h4>Mortgage lenders will not loan monies on a short lease</h4> Mortgage companies do not like short residential leases. You are likely to experience problems where you wish to sell your flat in Mickleover if the unexpired term of your lease is under the criteria set by most banks and building societies. Different mortgage companies have varying criteria but generally they are looking for an unexpired term of at least 65 years.
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<th> Requirement
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4> Get in touch with one of our Mickleover lease extension solicitors or enfranchisement solicitors
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The conveyancers 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 conveyancing solicitor we work with provide it.
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Mickleover Lease Extension Case Summaries:
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<h5> Ibrahim, Mickleover, Derbyshire,</h5>
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Ibrahim was the the leasehold owner of a 2 bedroom apartment in Mickleover on the market with a lease of fraction over sixty years unexpired. Ibrahim on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
<h5>Mickleover case:</h5>
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In 2011 we were called by Dr Natalie Mercier who, having moved into a one bedroom flat in Mickleover in June 1995. The question was if we could estimate the price could be to extend the lease by ninety years. Comparative flats in Mickleover with 100 year plus lease were worth £257,800. The average ground rent payable was £65 invoiced quarterly. The lease expired in 2091. Considering the 65 years unexpired we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.
<h5>Mickleover case:</h5>
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Last Autumn we were phoned by Dr Caleb Ward , who
owned a one bedroom flat in Mickleover in October 2011. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Mickleover with an extended lease were in the region of £191,400. The average amount of ground rent was £55 billed quarterly. The lease lapsed in 2080. Given that there were 54 years outstanding we estimated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 not including expenses.
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