The closer a residential lease in Mitcheldean gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Mitcheldean will qualify for this right; nevertheless a lawyer will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Mitcheldean,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mitcheldean valuers.
Trailing lengthy negotiations with the freeholder of her basement apartment in Mitcheldean, Jordan commenced the lease extension process as the 80 year mark was fast advancing. The transaction completed in January 2007. The freeholder’s fees were negotiated to under 500 pounds.
In 2009 we were called by Mrs Hollie Morel who, having took over the lease of a recently refurbished flat in Mitcheldean in July 2005. The dilemma was if we could estimate the price could be for a 90 year lease extension. Identical premises in Mitcheldean with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 invoiced monthly. The lease expiry date was in 2077. Taking into account 51 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 not including costs.
Mr and Mrs. F Laurent owned a newly refurbished flat in Mitcheldean in February 1999. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Mitcheldean with a long lease were in the region of £210,600. The average amount of ground rent was £45 billed quarterly. The lease termination date was on 7 April 2088. Having 62 years outstanding we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.