Mickleover leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Mickleover will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and procedures to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Mickleover leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jackson was the the leasehold owner of a high value apartment in Mickleover on the market with a lease of fraction over 59 years unexpired. Jackson informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
In 2011 we were called by Mr and Mrs. A Gunderson who, having completed a purpose-built apartment in Mickleover in July 2003. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Comparative homes in Mickleover with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease end date was in 2096. Having 70 years left we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Mrs Bethany Walker owned a newly refurbished apartment in Mickleover in November 2004. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable flats in Mickleover with an extended lease were valued around £223,400. The average amount of ground rent was £60 collected quarterly. The lease ran out on 19 September 2085. Given that there were 59 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of professional charges.