It’s a harsh truth that a Muxton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Muxton property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Muxton will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Muxton with over one hundred 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Muxton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her ground floor apartment in Muxton, Jessica started the lease extension process just as her lease was nearing the all-important 80-year deadline. The transaction completed in May 2010. The freeholder’s costs were negotiated to about 450 pounds.
Last month we were e-mailed by Dr R Watson , who moved into a purpose-built apartment in Muxton in August 1995. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Identical flats in Muxton with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 billed monthly. The lease ran out on 4 October 2094. Given that there were 68 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last Spring we were contacted by Mr and Mrs. T Ramírez , who was assigned a lease of a recently refurbished flat in Muxton in February 2004. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical residencies in Muxton with a long lease were worth £285,000. The average amount of ground rent was £55 billed quarterly. The lease ran out in 2105. Having 79 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.