Minera leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Minera will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Minera with over one hundred 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Minera,the lease extension experts 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 Minera valuers.
Freddie owned a 2 bedroom apartment in Minera on the market with a lease of a few days over sixty years remaining. Freddie on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Last year we were called by Mr and Mrs. A Mason , who completed a ground floor apartment in Minera in November 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative homes in Minera with a long lease were worth £290,000. The average ground rent payable was £60 invoiced monthly. The lease came to a finish on 28 November 2106. Taking into account 80 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.
Last month we were approach by Mrs R Gómez , who was assigned a lease of a one bedroom flat in Minera in May 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Minera with an extended lease were valued about £200,800. The average amount of ground rent was £65 billed every twelve months. The lease expiry date was on 1 August 2086. Given that there were 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including fees.