Old St Mellons leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Old St Mellons tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Old St Mellons you really ought to see if your lease has between seventy and ninety years left. There are compelling reasons why a Old St Mellons leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Old St Mellons with over one hundred years remaining on the lease are often referred to as ‘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 upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Engaging our service gives you increased control over the value of your Old St Mellons leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Mason owned a studio apartment in Old St Mellons on the market with a lease of a few days over 72 years unexpired. Mason informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last July we were approach by Mr and Mrs. J Morris , who acquired a one bedroom apartment in Old St Mellons in July 2010. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Old St Mellons with an extended lease were worth £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease concluded on 23 November 2104. Taking into account 79 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Mr Jayden Sánchez completed a one bedroom flat in Old St Mellons in April 1997. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Old St Mellons with 100 year plus lease were valued about £275,000. The average amount of ground rent was £65 invoiced monthly. The lease finished in 2093. Taking into account 68 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.