The value of Moor Row leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than eighty years
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Moor Row,the lease extension experts 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 Moor Row valuers.
Muhammad was the the leasehold proprietor of a conversion apartment in Moor Row being marketed with a lease of a little over fifty eight years remaining. Muhammad informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. F Lewis acquired a basement apartment in Moor Row in July 1997. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar properties in Moor Row with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease expired in 2100. Taking into account 75 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
Mr and Mrs. Y Lee completed a basement flat in Moor Row in June 1998. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Similar premises in Moor Row with 100 year plus lease were valued around £250,400. The average ground rent payable was £65 collected every twelve months. The lease ended in 2089. Taking into account 64 years left we approximated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus legals.