With a long leasehold premises in Mickleover, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years remaining. Residents in Mickleover with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years left, under the current statute the landlord can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Mickleover with in excess of 100 years outstanding on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | 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 be at least 30 years plus the term of the mortgage at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder 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.
Jasper owned a high value flat in Mickleover being marketed with a lease of just over 72 years outstanding. Jasper informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and secured an acceptable resolution informally and readily saleable.
In 2011 we were called by Mr and Mrs. U Walker who, having purchased a one bedroom apartment in Mickleover in February 1998. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable homes in Mickleover with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced annually. The lease expired on 5 July 2097. Given that there were 71 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
Mrs A Simon acquired a one bedroom apartment in Mickleover in November 2011. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparable properties in Mickleover with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease ended in 2086. Having 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of legals.