The Meadows leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in The Meadows will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in The Meadows with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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 The Meadows,the lease extension experts 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 The Meadows valuers.
Benjamin was the the leasehold proprietor of a conversion apartment in The Meadows being marketed with a lease of a few days over sixty years remaining. Benjamin on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Last Autumn we were e-mailed by Dr Jonathan Girard , who acquired a newly refurbished flat in The Meadows in September 2007. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable properties in The Meadows with a long lease were in the region of £206,200. The average ground rent payable was £55 billed annually. The lease expired on 9 February 2082. Taking into account 56 years left we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.
In 2011 we were e-mailed by Dr Elizabeth Parker who, having owned a one bedroom apartment in The Meadows in July 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in The Meadows with a long lease were worth £300,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ended in 2102. Given that there were 76 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.