Unfortunately that a Mudeford residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Mudeford property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Mudeford will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Mudeford with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Skipton Building Society | |
| TSB | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Mudeford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mudeford valuers.
Caleb owned a conversion apartment in Mudeford being marketed with a lease of a few days over 72 years outstanding. Caleb informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2014 we were contacted by Mr C Rodríguez who, having was assigned a lease of a first floor flat in Mudeford in September 2009. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparable properties in Mudeford with an extended lease were worth £246,800. The mid-range ground rent payable was £60 collected yearly. The lease finished in 2076. Considering the 50 years unexpired we estimated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of expenses.
Mr and Mrs. J Nguyen completed a garden flat in Mudeford in March 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in Mudeford with a long lease were valued about £208,200. The average ground rent payable was £65 billed yearly. The lease concluded in 2087. Considering the 61 years remaining we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of legals.