Mickleover leases on domestic deteriorating in value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Mickleover will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Mickleover with in excess of 100 years remaining 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 freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The lawyers that we work with undertake Mickleover lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Austin, came very near to the eighty-year mark with the lease on his basement flat in Mickleover. In buying his flat twenty years ago, the lease term was of minimal concern. Luckily, he recognised he would imminently be paying an escalated premium for a lease extension. Austin arranged for a lease extension just under the wire last June. Austin and the freeholder in the end agreed on sum of £6,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by a minimum £1,025.
Last Winter we were e-mailed by Dr K Nguyen , who purchased a one bedroom flat in Mickleover in November 2010. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Mickleover with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 billed monthly. The lease lapsed on 21 October 2080. Taking into account 55 years left we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including legals.
Mr and Mrs. M Rogers was assigned a lease of a purpose-built flat in Mickleover in September 2005. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Mickleover with an extended lease were in the region of £295,000. The average ground rent payable was £45 collected annually. The lease came to a finish in 2100. Considering the 75 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.