When it comes to long leasehold property in Miles Platting, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are less than 80 years left. Residents in Miles Platting with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has under 80 years remaining, under the current legislation the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Miles Platting leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her basement flat in Miles Platting, Emma started the lease extension process as the 80 year threshold was swiftly nearing. The lease extension completed in November 2014. The landlord’s charges were negotiated to about 650 pounds.
Mr and Mrs. F Moreau took over the lease of a one bedroom flat in Miles Platting in July 1997. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar flats in Miles Platting with an extended lease were valued about £220,400. The mid-range ground rent payable was £45 billed monthly. The lease concluded on 19 February 2090. Considering the 64 years left we approximated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 plus fees.
Dr Lucas Lefèvre completed a one bedroom apartment in Miles Platting in April 2011. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Miles Platting with 100 year plus lease were valued about £270,000. The average amount of ground rent was £55 billed monthly. The lease lapsed on 5 September 2101. Having 75 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.