Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Moor Row. Clearly, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Moor Row have the legal entitlement to extend the lease for an additional 90 years under legislation. You should give careful attention before putting off your Moor Row lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Using our service gives 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 want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jayden owned a studio apartment in Moor Row being marketed with a lease of a little over 72 years left. Jayden informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Jayden to invoke his statutory right. Jayden procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2011 we were phoned by Dr K Young who, having purchased a basement apartment in Moor Row in February 1999. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative residencies in Moor Row with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced annually. The lease end date was in 2097. Given that there were 72 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
In 2012 we were phoned by Mr and Mrs. J Lefebvre who, having took over the lease of a one bedroom apartment in Moor Row in March 1999. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Moor Row with an extended lease were valued around £233,200. The average amount of ground rent was £60 collected every twelve months. The lease terminated on 2 March 2086. Given that there were 61 years remaining we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 not including legals.