The Meadows leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying The Meadows residential leaseholders to extend the terms of long leases. If you are a leasehold owner in The Meadows you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in The Meadows with more than one hundred years left on the lease are often regarded as a ‘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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in The Meadows can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in lease extensions.
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 procuring 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.
Last October Adam, started to get near to the eighty-year threshold with the lease on his ground floor apartment in The Meadows. Having purchased his flat two decades ago, the length of the lease was of little bearing. As luck would have it, he realised he needed to take steps soon on Extending the lease. Adam extended the lease just under the wire in March. Adam and the freeholder in the end settled on sum of £5,500 . If he failed to meet the deadline, the premium would have become more costly by at least £1,075.
Ms R Robinson moved into a one bedroom apartment in The Meadows in June 1995. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparable premises in The Meadows with an extended lease were valued about £191,400. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded in 2080. Given that there were 54 years unexpired we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of fees.
Mr and Mrs. E Parker moved into a purpose-built flat in The Meadows in April 2011. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical residencies in The Meadows with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished on 27 September 2100. Having 74 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.