East Molesey leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in East Molesey will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancers that we work with procure East Molesey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Hugo owned a studio apartment in East Molesey on the market with a lease of just over fifty eight years outstanding. Hugo informally approached his landlord 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 initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
In 2010 we were phoned by Mrs Naomi Green who, having moved into a newly refurbished apartment in East Molesey in June 2007. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable residencies in East Molesey with a long lease were in the region of £243,000. The average amount of ground rent was £65 invoiced quarterly. The lease concluded on 26 March 2089. Taking into account 63 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus fees.
An example of a Lease Extension case for a East Molesey property is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case related to 1 flat.