As the length of the unexpired term of a Old St Mellons domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years remaining 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 primary rational as to why you should extend the lease without delay. Most flat owners in Old St Mellons will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Old St Mellons with more than one hundred years unexpired on the lease are often 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 purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
The conveyancers that we work with undertake Old St Mellons 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.
Caleb owned a conversion flat in Old St Mellons on the market with a lease of a little over 61 years left. Caleb on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Caleb to invoke his statutory right. Caleb procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last October we were e-mailed by Dr Isabel Hall , who purchased a one bedroom flat in Old St Mellons in April 2009. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical homes in Old St Mellons with an extended lease were worth £257,800. The average amount of ground rent was £65 collected monthly. The lease ran out in 2091. Given that there were 65 years unexpired we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.
Last February we were contacted by Mr S Murphy , who moved into a one bedroom flat in Old St Mellons in October 2007. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Old St Mellons with an extended lease were worth £196,400. The average ground rent payable was £55 billed monthly. The lease ended on 23 July 2080. Taking into account 54 years outstanding we approximated the premium to the landlord to extend the lease to be within £35,200 and £40,600 exclusive of professional charges.