The re-sale value of a leasehold property in Motspur Park is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded well before the 80 year mark. Statute entitles Motspur Park qualifying lessees to an additional term of ninety years over and above the remaining term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Motspur Park with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Motspur Park,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Motspur Park valuers.
Samuel was the the leasehold proprietor of a high value flat in Motspur Park being marketed with a lease of fraction over 72 years unexpired. Samuel informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Samuel to invoke his statutory right. Samuel obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Autumn we were phoned by Dr Katherine Lefèvre , who took over the lease of a one bedroom apartment in Motspur Park in October 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Motspur Park with an extended lease were valued around £208,600. The average amount of ground rent was £60 collected per annum. The lease finished on 13 May 2081. Taking into account 57 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Motspur Park premises is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case was in relation to 1 flat. The unexpired term as at the valuation date was 60.43 years.