With a long leasehold property in Old St Mellons, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Leasehold owners in Old St Mellons with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has under 80 years remaining, under the current Act the freeholder is entitled to calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Old St Mellons,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Old St Mellons valuers.
Gabriel owned a high value flat in Old St Mellons on the market with a lease of a few days over 61 years unexpired. Gabriel informally 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 grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2013 we were contacted by Mr K Lambert who, having was assigned a lease of a purpose-built apartment in Old St Mellons in July 2003. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative residencies in Old St Mellons with 100 year plus lease were in the region of £189,000. The mid-range amount of ground rent was £55 billed monthly. The lease terminated on 10 February 2079. Given that there were 53 years remaining we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
In 2014 we were e-mailed by Ms W Mason who, having owned a first floor flat in Old St Mellons in July 2009. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Identical premises in Old St Mellons with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded on 5 September 2099. Considering the 73 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.