The re-sale value of a leasehold property in Mundesley is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that a lease extension can be addressed in advance of the 80 year threshold. Leasehold Reform legislation entitles Mundesley qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a peppercorn rent (no ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Mundesley with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
Daniel owned a high value flat in Mundesley being marketed with a lease of fraction over 72 years unexpired. Daniel on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. N Bailey took over the lease of a purpose-built flat in Mundesley in November 1996. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Mundesley with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 collected per annum. The lease lapsed in 2095. Considering the 69 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Mr Luca Martinez was assigned a lease of a garden apartment in Mundesley in April 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable properties in Mundesley with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease ended on 12 November 2106. Taking into account 80 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.