Mitcheldean leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Mitcheldean enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Mitcheldean you really ought to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Mitcheldean flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with procure Mitcheldean 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 conveyancing solicitor we work with provide it.
Following unsuccessful discussions with the landlord of her studio flat in Mitcheldean, Lauren commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The legal work was concluded in February 2011. The landlord’s fees were restricted to under 500 pounds.
Last Summer we were contacted by Mr V Thompson , who purchased a purpose-built apartment in Mitcheldean in July 1996. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative flats in Mitcheldean with an extended lease were in the region of £290,000. The mid-range ground rent payable was £60 invoiced per annum. The lease came to a finish on 2 November 2106. Taking into account 80 years remaining we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.
Mr and Mrs. N White purchased a recently refurbished flat in Mitcheldean in April 2006. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Similar residencies in Mitcheldean with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 collected every twelve months. The lease ran out in 2086. Taking into account 60 years remaining we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of expenses.