The market value of Mulbarton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is less than eighty years
Leasehold premises in Mulbarton with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Mulbarton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Max was the the leasehold proprietor of a 2 bedroom flat in Mulbarton on the market with a lease of a little over sixty years outstanding. Max on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to agree 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 due on a lease extension were Max to invoke his statutory right. Max obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last Spring we were called by Mr and Mrs. M Davies , who took over the lease of a one bedroom flat in Mulbarton in March 1998. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical residencies in Mulbarton with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease came to a finish in 2087. Considering the 62 years remaining we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.
In 2010 we were e-mailed by Mr and Mrs. Y Girard who, having bought a first floor flat in Mulbarton in July 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Mulbarton with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 invoiced yearly. The lease ran out in 2098. Taking into account 73 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.