Mickleover leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Mickleover tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Mickleover you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Mickleover with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 obtain guidance from a conveyancer and valuer with experience in this area.
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 dealing with Mickleover lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oliver owned a high value apartment in Mickleover being marketed with a lease of fraction over 59 years remaining. Oliver informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend 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. Ordinarily, ground rent would not be due on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
In 2012 we were contacted by Mrs Ashleigh Cox who, having moved into a studio flat in Mickleover in October 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Identical flats in Mickleover with a long lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced annually. The lease terminated on 15 March 2087. Having 61 years unexpired we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of legals.
Dr D Roux moved into a one bedroom apartment in Mickleover in February 2005. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Mickleover with 100 year plus lease were valued around £166,800. The average ground rent payable was £50 collected every twelve months. The lease elapsed on 19 October 2076. Having 50 years unexpired we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus expenses.