It’s a harsh truth that a Mundesley residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Mundesley property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Mundesley will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Mundesley with more than one hundred years remaining 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Yorkshire 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. |
The conveyancers that we work with undertake Mundesley 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.
Off the back of protracted negotiations with the landlord of her leasehold apartment in Mundesley, Mollie started the lease extension process as the eighty year threshold was rapidly nearing. The legal work completed in January 2015. The landlord’s fees were kept to an absolute minimum.
Ms S Mason bought a ground floor flat in Mundesley in February 1997. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable residencies in Mundesley with a long lease were valued around £210,600. The average ground rent payable was £45 billed annually. The lease came to a finish on 2 May 2088. Having 62 years left we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.
In 2014 we were approached by Mr and Mrs. W David who, having moved into a newly refurbished apartment in Mundesley in July 1998. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Similar flats in Mundesley with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 billed per annum. The lease terminated in 2099. Having 73 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.