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 expense of extending the lease can escalate significantly once the unexpired lease term is less than 80 years
Leasehold residencies in Mickleover with over one hundred years outstanding on the lease are sometimes 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 buying the freehold unless savings on ground rent and service charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire Building Society | 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. |
Lease extensions in Mickleover 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 Mickleover lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo was the the leasehold proprietor of a studio apartment in Mickleover on the market with a lease of a few days over sixty years remaining. Theo informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mr Harrison Pérez bought a purpose-built apartment in Mickleover in May 1996. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable properties in Mickleover with a long lease were worth £300,000. The mid-range ground rent payable was £50 collected monthly. The lease came to a finish in 2101. Taking into account 76 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Dr D Moreau purchased a one bedroom flat in Mickleover in May 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Similar premises in Mickleover with 100 year plus lease were worth £257,800. The average ground rent payable was £65 invoiced annually. The lease lapsed on 27 August 2090. Given that there were 65 years unexpired we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of fees.