The nearer a domestic lease in Mudeford nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 125 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Mudeford will meet the qualifying criteria; however a lawyer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Mudeford with in excess of one hundred years left on the lease are sometimes regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
The lawyers that we work with handle 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 conveyancer we work with provide it.
Jonathan owned a high value flat in Mudeford on the market with a lease of just over sixty years outstanding. Jonathan on an informal basis contacted his freeholder being 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 on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Autumn we were e-mailed by Mr and Mrs. G Morgan , who was assigned a lease of a studio apartment in Mudeford in April 1995. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Mudeford with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected yearly. The lease terminated on 13 October 2095. Considering the 69 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2012 we were phoned by Mr and Mrs. P Lambert who, having owned a one bedroom flat in Mudeford in September 1997. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical properties in Mudeford with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £60 collected per annum. The lease came to a finish in 2106. Considering the 80 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.