The nearer a residential lease in Minehead nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Most flat owners in Minehead will qualify for this right; that being said a lawyer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Minehead with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Minehead can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 in-depth market knowledge dealing with Minehead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Andrew, started to get near to the 80-year mark with the lease on his two bedroom apartment in Minehead. Having bought his flat twenty years previously, the length of the lease was of little concern. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. Andrew extended the lease just in the nick of time last September. Andrew and the freeholder in the end settled on the final figure of £6,000 . If the lease had gone lower than 80 years, the premium would have increased by a minimum £950.
In 2011 we were approached by Mr and Mrs. I Clarke who, having acquired a basement apartment in Minehead in June 1996. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical flats in Minehead with an extended lease were worth £290,000. The average ground rent payable was £60 collected annually. The lease finished in 2105. Having 80 years unexpired we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
In 2012 we were phoned by Mr Toby Wright who, having completed a garden apartment in Minehead in March 2003. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparative flats in Minehead with a long lease were in the region of £200,800. The average ground rent payable was £65 invoiced annually. The lease ran out in 2085. Considering the 60 years outstanding we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including costs.