With a domestic leasehold property in Mossley, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease 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 particularly when there are fewer than 80 years remaining. Anyone in Mossley with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the relevant Act the freeholder is entitled to calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you enhanced control over the value of your Mossley leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Riley owned a conversion apartment in Mossley being sold with a lease of just over 59 years unexpired. Riley on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Riley to exercise his statutory right. Riley procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Autumn we were contacted by Dr Dylan Jackson , who acquired a ground floor flat in Mossley in April 2000. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative residencies in Mossley with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 invoiced quarterly. The lease ran out in 2092. Taking into account 66 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Dr V Richardson completed a one bedroom flat in Mossley in February 1995. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Mossley with an extended lease were in the region of £275,000. The average amount of ground rent was £55 invoiced every twelve months. The lease finished on 10 January 2103. Considering the 77 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.