The nearer a residential lease in Mickleover nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 100 years to run then this decrease may be negligible however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Mickleover will qualify for this right; nevertheless a lawyer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Mickleover with in excess of 100 years unexpired 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 purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Mickleover can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 in-depth market knowledge 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.
Last Autumn Ali, started to get close to the eighty-year mark with the lease on his studio flat in Mickleover. In buying his flat 18 years ago, the length of the lease was of no significance. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Ali was able to extend his lease at the eleventh hour in September. Ali and the landlord who owned the flat above subsequently settled on sum of £6,000 . If the lease had gone lower than 80 years, the sum would have increased by at least £875.
In 2013 we were e-mailed by Mrs Naomi Ali who, having moved into a garden apartment in Mickleover in January 2000. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Mickleover with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £50 collected annually. The lease ended on 4 July 2101. Taking into account 75 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
Mr K Bennett moved into a one bedroom flat in Mickleover in February 1998. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable premises in Mickleover with 100 year plus lease were valued about £250,400. The average amount of ground rent was £65 billed monthly. The lease finished on 6 July 2090. Taking into account 64 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.