When it comes to domestic leasehold premises in Muxton, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years remaining. Residents in Muxton with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has fewer than 80 years remaining, under the current legislation the landlord can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Muxton with more than 100 years remaining 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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 conveyancing solicitors that we work with undertake Muxton 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.
Toby owned a conversion apartment in Muxton on the market with a lease of a few days over 61 years remaining. Toby informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Toby to exercise his statutory right. Toby procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Last Summer we were phoned by Mr and Mrs. J Turner , who purchased a one bedroom apartment in Muxton in January 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar premises in Muxton with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ended on 10 July 2095. Having 70 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Mr Riley Jones took over the lease of a one bedroom apartment in Muxton in January 1999. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Similar flats in Muxton with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 billed monthly. The lease termination date was on 20 April 2075. Having 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus expenses.