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 expense of extending the lease can increase materialy once the remaining term is less than 80 years
Leasehold properties in Mulbarton with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you better control over the value of your Mulbarton leasehold, as your property will be more valuable and saleable in respect 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.
Leo owned a studio apartment in Mulbarton on the market with a lease of a little over sixty years unexpired. Leo on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last Summer we were phoned by Mrs Isabella Miller , who was assigned a lease of a one bedroom apartment in Mulbarton in July 2004. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Identical residencies in Mulbarton with a long lease were valued around £275,000. The average ground rent payable was £55 collected per annum. The lease end date was on 1 March 2102. Taking into account 76 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
Last Winter we were phoned by Ms Lauren Stewart , who was assigned a lease of a basement flat in Mulbarton in April 1995. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Mulbarton with a long lease were worth £176,200. The average ground rent payable was £65 billed every twelve months. The lease lapsed on 11 July 2082. Having 56 years remaining we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including costs.