Mirfield leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Mirfield will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Mirfield with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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:
|
Retaining our service will provide you increased control over the value of your Mirfield leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted discussions with the landlord of her purpose-built flat in Mirfield, Katherine initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The legal work was finalised in June 2011. The landlord’s costs were restricted to below 650 GBP.
Last Autumn we were phoned by Mr and Mrs. R Thompson , who purchased a first floor flat in Mirfield in February 2001. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Similar flats in Mirfield with a long lease were valued about £267,600. The average ground rent payable was £65 invoiced yearly. The lease lapsed in 2093. Given that there were 67 years outstanding we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus legals.
In 2009 we were called by Dr N Moore who, having owned a newly refurbished apartment in Mirfield in March 2003. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar premises in Mirfield with a long lease were in the region of £201,200. The mid-range ground rent payable was £55 billed annually. The lease end date was on 22 April 2082. Taking into account 56 years outstanding we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.