When it comes to long leasehold property in Mortimer, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Leasehold owners in Mortimer with a lease approaching 81 years remaining should seriously consider extending it without delay. Once a lease has less than eighty years outstanding, under the relevant Act the landlord can calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Mortimer with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Mortimer can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Mortimer lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Samuel, started to get near to the eighty-year threshold with the lease on his studio apartment in Mortimer. In buying his property 18 years ago, the lease term was of no importance. Thankfully, he realised he needed to take action soon on a lease extension. Samuel was able to extend his lease at the eleventh hour last June. Samuel and the landlord eventually settled on an amount of £5,000 . If the lease had slid below eighty years, the price would have escalated by at least £1,050.
Ms Erin Ramírez acquired a garden flat in Mortimer in August 2002. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative premises in Mortimer with 100 year plus lease were in the region of £191,400. The mid-range ground rent payable was £55 collected quarterly. The lease came to a finish on 14 March 2079. Considering the 54 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus costs.
Mr and Mrs. Y Evans completed a studio apartment in Mortimer in November 2002. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparable premises in Mortimer with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 billed annually. The lease concluded on 2 May 2099. Considering the 74 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.