As the length of the unexpired term of a Mulbarton domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. Most flat owners in Mulbarton will meet the qualifying criteria; however a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Mulbarton can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 a wealth of experience 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.
Sam owned a high value flat in Mulbarton being marketed with a lease of fraction over sixty years left. Sam on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared 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 Sam to exercise his statutory right. Sam procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Last Autumn we were called by Mr and Mrs. I Torres , who acquired a purpose-built flat in Mulbarton in January 2003. The question was if we could estimate the price would be for a ninety year extension to my lease. Similar residencies in Mulbarton with a long lease were worth £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease elapsed in 2104. Considering the 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
Dr Sarah Clark owned a purpose-built apartment in Mulbarton in October 2005. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical homes in Mulbarton with an extended lease were in the region of £186,000. The average amount of ground rent was £65 invoiced every twelve months. The lease end date was in 2084. Taking into account 58 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 not including expenses.