The only way is down when it comes to Mossley lease terms. Mossley leaseholds that have a lease term shorter than 80 years will de-escalate in value even faster, and the cost to extend your lease will go up.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Mossley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Omar owned a high value apartment in Mossley being marketed with a lease of fraction over sixty years outstanding. Omar on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
Mr and Mrs. R Cook owned a studio flat in Mossley in July 2006. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar flats in Mossley with an extended lease were in the region of £225,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease elapsed on 12 July 2089. Having 64 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of legals.
Last July we were e-mailed by Dr Rhiannon Howard , who moved into a first floor flat in Mossley in October 2003. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar residencies in Mossley with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated in 2100. Taking into account 75 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.