When it comes to residential leasehold premises in Mossley, you are actually purchasing an entitlement to live in a property for a prescribed time frame. 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 a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once 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. When a lease has under 80 years remaining, under the current statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years remaining 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. |
| 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; |
| 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. |
| 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. |
Lease extensions in Mossley can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Mossley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Joseph, started to get close to the eighty-year threshold with the lease on his first floor flat in Mossley. In buying his flat two decades ago, the lease term was of minimal bearing. Thankfully, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Joseph was able to extend his lease just under the wire last August. Joseph and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If the lease had slipped below 80 years, the premium would have gone up by a minimum £950.
Last May we were contacted by Dr Tyler Girard , who owned a ground floor apartment in Mossley in June 2006. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Identical flats in Mossley with 100 year plus lease were valued around £250,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish on 19 September 2095. Having 69 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Last month we were approach by Dr D Rose , who purchased a first floor flat in Mossley in July 2012. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar residencies in Mossley with an extended lease were in the region of £285,000. The average ground rent payable was £55 invoiced annually. The lease expired in 2106. Having 80 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.