The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Mudeford can extend the lease for a further 90 years under statute. Please give careful consideration before delaying your Mudeford lease extension. Shelving that expense now simply escalates the premium you will ultimately have to pay for a lease extension.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Mudeford,the lease extension lawyers 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 Mudeford valuers.
Connor was the the leasehold proprietor of a high value flat in Mudeford being marketed with a lease of a few days over sixty years outstanding. Connor on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2010 we were called by Mrs Sian Michel who, having completed a one bedroom flat in Mudeford in September 2003. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Mudeford with an extended lease were valued around £270,000. The average ground rent payable was £55 collected yearly. The lease expiry date was on 15 March 2100. Considering the 74 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Mr D Alexander was assigned a lease of a ground floor flat in Mudeford in October 2009. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Mudeford with 100 year plus lease were worth £166,400. The average ground rent payable was £60 invoiced every twelve months. The lease ran out in 2080. Having 54 years unexpired we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including fees.