Lees and Moorside leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Lees and Moorside tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Lees and Moorside you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Lees and Moorside with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Lees and Moorside,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lees and Moorside valuers.
After unsuccessful correspondence with the landlord of her garden apartment in Lees and Moorside, Abbie started the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was concluded in April 2015. The freeholder’s fees were restricted to approximately six hundred pounds.
Last Spring we were approach by Mr and Mrs. Y Carter , who moved into a newly refurbished apartment in Lees and Moorside in July 2012. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical flats in Lees and Moorside with an extended lease were in the region of £218,000. The average ground rent payable was £45 billed yearly. The lease finished in 2089. Having 63 years remaining we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including expenses.
Last Autumn we were approach by Mr and Mrs. J Jackson , who moved into a basement flat in Lees and Moorside in August 2010. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Similar properties in Lees and Moorside with a long lease were in the region of £270,000. The average ground rent payable was £55 billed every twelve months. The lease finished on 11 August 2100. Having 74 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.