It’s an underpublicised certainty that a Mudeford residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Mudeford property market.Where your lease has approximately ninety years left, you should start considering 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 slips lower than eighty years - otherwise a higher amount will be due. Most leasehold owners in Mudeford will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Mudeford with in excess of one hundred years remaining 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with procure Mudeford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Toby was the the leasehold proprietor of a conversion apartment in Mudeford on the market with a lease of just over 59 years left. Toby on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Toby to exercise his statutory right. Toby obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last month we were contacted by Ms Harriet Allen , who completed a newly refurbished flat in Mudeford in July 1995. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Similar homes in Mudeford with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease expired on 14 August 2103. Considering the 77 years outstanding we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.
In 2013 we were contacted by Dr Tommy Flores who, having purchased a basement flat in Mudeford in September 2008. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative flats in Mudeford with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 billed yearly. The lease expired in 2083. Considering the 57 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.