Unfortunately that a Mudeford residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Mudeford property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Mudeford will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Mudeford with over 100 years unexpired on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Engaging our service will provide you better control over the value of your Mudeford leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kyle was the the leasehold proprietor of a high value apartment in Mudeford being sold with a lease of a little over fifty eight years left. Kyle informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Kyle to exercise his statutory right. Kyle procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mr H Kelly took over the lease of a one bedroom apartment in Mudeford in March 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Mudeford with 100 year plus lease were in the region of £208,200. The average ground rent payable was £65 billed annually. The lease finished in 2087. Given that there were 61 years unexpired we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of expenses.
In 2014 we were phoned by Ms Rachel Sánchez who, having moved into a one bedroom flat in Mudeford in October 2004. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable premises in Mudeford with an extended lease were worth £260,000. The average amount of ground rent was £50 billed annually. The lease terminated in 2098. Having 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.