Mickleover leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Mickleover will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 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 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis 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. |
Regardless of whether you are a tenant or a landlord in Mickleover,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mickleover valuers.
Logan was the the leasehold proprietor of a 2 bedroom apartment in Mickleover being sold with a lease of fraction over sixty years unexpired. Logan informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Logan to exercise his statutory right. Logan obtained expert advice and secured an acceptable deal informally and readily saleable.
Last January we were called by Ms W López , who was assigned a lease of a first floor apartment in Mickleover in April 2012. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative properties in Mickleover with 100 year plus lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected yearly. The lease ran out on 25 October 2092. Having 66 years left we estimated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of costs.
Mr and Mrs. A Wood completed a purpose-built apartment in Mickleover in August 1999. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical premises in Mickleover with a long lease were valued around £198,800. The average amount of ground rent was £55 collected annually. The lease expired in 2081. Considering the 55 years unexpired we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.