There is no doubt about it a leasehold property in The Meadows is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 125 years to run then this decrease may be fractional however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in The Meadows will meet the qualifying criteria; however a conveyancer can confirm whether 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 less than two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in The Meadows can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with The Meadows lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the landlord of her ground floor flat in The Meadows, Leah commenced the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension completed in January 2010. The landlord’s costs were restricted to a tad over 450 pounds.
Mr Ben Petit bought a ground floor apartment in The Meadows in April 1996. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar residencies in The Meadows with an extended lease were worth £275,000. The average ground rent payable was £65 invoiced monthly. The lease lapsed in 2094. Having 68 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
In 2009 we were approached by Mr D Girard who, having owned a one bedroom flat in The Meadows in November 2001. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Identical properties in The Meadows with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 billed monthly. The lease came to a finish in 2083. Taking into account 57 years remaining we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including professional charges.