For anyone whose Mitcheldean flat is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold properties in Mitcheldean with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Mitcheldean,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mitcheldean valuers.
Subsequent to lengthy discussions with the landlord of her garden apartment in Mitcheldean, Abbie commenced the lease extension process as the 80 year deadline was swiftly approaching. The lease extension was finalised in March 2014. The landlord’s fees were kept to an absolute minimum.
Last Summer we were contacted by Mr I Lefèvre , who was assigned a lease of a garden flat in Mitcheldean in June 2010. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Identical residencies in Mitcheldean with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 collected annually. The lease concluded in 2086. Considering the 61 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of legals.
Mr L Brown completed a one bedroom apartment in Mitcheldean in August 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Identical homes in Mitcheldean with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 collected every twelve months. The lease expired in 2097. Having 72 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.