Mulbarton leases on domestic deteriorating in value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Mulbarton will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Mulbarton with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Mulbarton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Mulbarton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Leo, came dangerously close to the eighty-year threshold with the lease on his leasehold apartment in Mulbarton. Having purchased his home two decades ago, the lease term was of minimal interest. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Leo extended the lease at the eleventh hour in January. Leo and the freeholder via the management company in the end agreed on sum of £5,500 . If he failed to meet the deadline, the figure would have become more exhorbitant by a minimum £925.
In 2009 we were contacted by Mr Jude Moreau who, having acquired a first floor flat in Mulbarton in November 2004. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar residencies in Mulbarton with an extended lease were valued about £183,600. The average ground rent payable was £65 billed annually. The lease concluded in 2082. Given that there were 57 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.
In 2012 we were phoned by Mr and Mrs. Y Girard who, having acquired a basement flat in Mulbarton in September 2011. The question was if we could estimate the price could be to prolong the lease by ninety years. Comparative homes in Mulbarton with 100 year plus lease were in the region of £245,000. The average amount of ground rent was £50 billed every twelve months. The lease finished on 22 May 2093. Given that there were 68 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.