Unfortunately that a Mountsorrel residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Mountsorrel property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining drops under eighty 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 the property The majority of flat owners in Mountsorrel will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Mountsorrel with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| TSB | |
| Yorkshire Building Society |
Engaging our service will provide you enhanced control over the value of your Mountsorrel leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Henry owned a conversion flat in Mountsorrel being marketed with a lease of just over sixty years unexpired. Henry informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Autumn we were called by Dr U Howard , who moved into a basement flat in Mountsorrel in February 2010. The question was if we could estimate the premium could be to extend the lease by ninety years. Similar flats in Mountsorrel with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished on 11 April 2086. Taking into account 60 years left we calculated the premium to the landlord to extend the lease to be within £25,700 and £29,600 exclusive of expenses.
In 2013 we were e-mailed by Ms E Ward who, having was assigned a lease of a recently refurbished flat in Mountsorrel in May 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Similar premises in Mountsorrel with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 billed per annum. The lease ran out in 2106. Having 80 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.