With a domestic leasehold property in Mossley, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Leasehold owners in Mossley with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has below 80 years remaining, under the current statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Mossley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mossley valuers.
Noah owned a 2 bedroom apartment in Mossley being sold with a lease of fraction over 61 years unexpired. Noah informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Noah to exercise his statutory right. Noah procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Dr V Cox acquired a ground floor apartment in Mossley in September 2011. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Identical residencies in Mossley with an extended lease were valued around £246,800. The average amount of ground rent was £60 invoiced monthly. The lease came to a finish on 10 January 2074. Taking into account 50 years remaining we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus expenses.
Mr and Mrs. S Vincent purchased a first floor flat in Mossley in May 2012. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparable premises in Mossley with a long lease were valued about £208,200. The mid-range amount of ground rent was £65 collected monthly. The lease lapsed in 2085. Considering the 61 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including expenses.