Lees and Moorside leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Lees and Moorside enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Lees and Moorside you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Lees and Moorside can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Lees and Moorside lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo owned a high value flat in Lees and Moorside being marketed with a lease of a few days over sixty years outstanding. Theo informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Dr L Sánchez moved into a one bedroom flat in Lees and Moorside in September 2007. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Similar premises in Lees and Moorside with an extended lease were worth £200,800. The average ground rent payable was £65 invoiced per annum. The lease termination date was on 10 May 2085. Considering the 60 years remaining we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of expenses.
Last year we were e-mailed by Dr F Hall , who owned a one bedroom flat in Lees and Moorside in March 2012. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparable residencies in Lees and Moorside with an extended lease were in the region of £260,000. The average amount of ground rent was £50 collected monthly. The lease finished in 2096. Given that there were 71 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.