The closer a domestic lease in Moor Row gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Moor Row will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Moor Row leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Lewis, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Moor Row. Having purchased his home two decades ago, the unexpired term was of minimal concern. Luckily, he realised he would soon be paying way over the odds for a lease extension. Lewis was able to extend his lease at the eleventh hour last June. Lewis and the freeholder subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £1,025.
Mr Y Martínez owned a first floor apartment in Moor Row in February 1995. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative residencies in Moor Row with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 collected monthly. The lease lapsed in 2095. Taking into account 70 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
In 2010 we were phoned by Dr Reuben Richardson who, having completed a basement apartment in Moor Row in May 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Moor Row with 100 year plus lease were worth £218,400. The mid-range ground rent payable was £60 invoiced annually. The lease concluded on 22 June 2084. Taking into account 59 years left we estimated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of legals.