The market value of a leasehold property in Moorgate is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded ahead of the 80 year threshold. Current legislation enables Moorgate qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Moorgate with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
The lawyers that we work with undertake Moorgate 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 conveyancing solicitor we work with provide it.
Trailing protracted correspondence with the landlord of her two bedroom apartment in Moorgate, Hollie commenced the lease extension process as the eighty year deadline was rapidly advancing. The legal work was concluded in May 2010. The landlord’s costs were negotiated to less than 600 GBP.
Last Winter we were contacted by Dr Daisy Morel , who purchased a one bedroom apartment in Moorgate in November 2004. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Moorgate with 100 year plus lease were valued about £191,400. The average amount of ground rent was £55 invoiced annually. The lease ended on 13 March 2080. Considering the 54 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 plus professional charges.
An example of a Lease Extension case for a Moorgate property is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case related to 2 flats. The unexpired residue of the current lease was 72.39 years.