As the length of the unexpired term of a Muxton domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Muxton will meet the qualifying criteria; that being said a conveyancer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Muxton with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| Halifax | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 lawyer we work with provide it.
In the wake of 6 months of lengthy negotiations with the landlord of her basement apartment in Muxton, Mollie initiated the lease extension process just as the lease was approaching the all-important eighty-year deadline. The legal work completed in August 2005. The freeholder’s fees were kept to an absolute minimum.
Mrs Rachel Reed bought a basement flat in Muxton in October 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Identical premises in Muxton with 100 year plus lease were valued about £191,000. The mid-range ground rent payable was £65 billed quarterly. The lease ended in 2083. Having 58 years as a residual term we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus expenses.
Last Summer we were contacted by Mr G Gray , who completed a garden apartment in Muxton in May 2001. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar properties in Muxton with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated on 11 October 2094. Considering the 69 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.