Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Mossley. Clearly, the term of lease remaining shortens over time. This is often overlooked and only becomes a problem when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Mossley have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give due consideration before delaying your Mossley lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold residencies in Mossley with over one hundred years left 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you enhanced control over the value of your Mossley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aiden owned a conversion apartment in Mossley being sold with a lease of a few days over 61 years remaining. Aiden informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Dr Nathaniel Bonnet moved into a studio flat in Mossley in June 1997. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable flats in Mossley with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed per annum. The lease finished in 2103. Taking into account 77 years left we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Mr Tommy White bought a purpose-built apartment in Mossley in February 2004. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparative residencies in Mossley with a long lease were valued about £183,600. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out on 3 November 2083. Taking into account 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.