Mirfield leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be due. Leasehold owners in Mirfield will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society |
The conveyancing solicitors that we work with handle Mirfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Half a year ago Connor, came precariously near to the eighty-year mark with the lease on his two bedroom flat in Mirfield. In buying his flat two decades ago, the length of the lease was of little significance. Fortunately, he realised he needed to take steps soon on Extending the lease. Connor extended the lease just under the wire in September. Connor and the freeholder via the management company ultimately settled on a premium of £5,500 . If the lease had dipped below 80 years, the sum would have increased by at least £1,000.
In 2011 we were called by Dr Jacob Vincent who, having bought a first floor apartment in Mirfield in June 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Mirfield with an extended lease were worth £200,000. The average amount of ground rent was £50 collected monthly. The lease ended on 18 July 2104. Having 78 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2010 we were called by Dr W White who, having purchased a first floor flat in Mirfield in July 1995. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Mirfield with 100 year plus lease were valued around £267,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease finished in 2093. Taking into account 67 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including professional charges.