As the length of the unexpired term of a Mossley residential lease diminished so does its value and therefore the value of your property. If the lease has, in excess of 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Mossley will qualify for this right; however a lawyer will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Mossley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mossley valuers.
In 2014 Isaac, came very near to the 80-year mark with the lease on his one bedroom apartment in Mossley. In buying his home two decades ago, the length of the lease was of no significance. Thankfully, he noticed he needed to take action soon on a lease extension. Isaac extended the lease at the eleventh hour last January. Isaac and the freeholder ultimately agreed on a premium of £5,500 . If he failed to meet the deadline, the amount would have increased by at least £925.
Mr and Mrs. H Bell was assigned a lease of a recently refurbished flat in Mossley in November 1997. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical homes in Mossley with an extended lease were in the region of £254,200. The average ground rent payable was £60 collected annually. The lease concluded in 2076. Considering the 51 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus costs.
In 2014 we were called by Dr Chelsea Scott who, having completed a newly refurbished apartment in Mossley in September 1998. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Similar residencies in Mossley with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease elapsed on 28 March 2087. Having 62 years left we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus fees.