Chances are that where you own a flat in Motspur Park you actually own a long leasehold interest over your property
Leasehold residencies in Motspur Park with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 gives you better control over the value of your Motspur Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Harrison, came very near to the 80-year threshold with the lease on his ground floor flat in Motspur Park. In buying his flat two decades ago, the unexpired term was of minimal importance. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Harrison extended the lease at the eleventh hour in June. Harrison and the freeholder subsequently agreed on the final figure of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,000.
Mrs Samantha Cook acquired a one bedroom flat in Motspur Park in June 1997. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparative residencies in Motspur Park with a long lease were in the region of £235,600. The mid-range ground rent payable was £60 billed every twelve months. The lease terminated in 2087. Considering the 62 years outstanding we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of fees.
An example of a Lease Extension case for a Motspur Park flat 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 related to 1 flat. The unexpired lease term was 60.43 years.