Mountsorrel leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Mountsorrel will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Mountsorrel with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Mountsorrel can be a difficult process. We recommend you procure professional help from a lawyer 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 a wealth of experience procuring Mountsorrel lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tyler was the the leasehold proprietor of a high value apartment in Mountsorrel being sold with a lease of just over 59 years remaining. Tyler on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last month we were phoned by Mrs Poppy Ward , who completed a basement apartment in Mountsorrel in June 1995. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative homes in Mountsorrel with 100 year plus lease were valued about £267,600. The average ground rent payable was £65 collected monthly. The lease lapsed on 13 July 2093. Considering the 67 years unexpired we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of expenses.
In 2012 we were e-mailed by Ms Isabella Moreau who, having completed a basement flat in Mountsorrel in July 2000. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Identical properties in Mountsorrel with a long lease were in the region of £201,200. The average amount of ground rent was £55 invoiced annually. The lease terminated on 2 June 2082. Considering the 56 years left we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.