When it comes to domestic leasehold premises in Low Moor, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Anyone in Low Moor with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has under eighty years left, under the relevant Act the freeholder is entitled to calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 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 unexpired, the residence will be worth the same as a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Low Moor leasehold, as your property will be more valuable and saleable in respect 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.
After unsuccessful discussions with the landlord of her purpose-built apartment in Low Moor, Chelsea started the lease extension process just as the lease was nearing the all-important eighty-year mark. The transaction completed in May 2014. The landlord’s charges were kept to an absolute minimum.
Last September we were called by Ms Rebecca Evans , who owned a ground floor apartment in Low Moor in April 2001. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar properties in Low Moor with an extended lease were worth £257,800. The mid-range amount of ground rent was £65 collected per annum. The lease came to a finish in 2091. Having 65 years remaining we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including costs.
Mr and Mrs. B Gray was assigned a lease of a ground floor flat in Low Moor in September 1998. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable premises in Low Moor with a long lease were valued around £191,400. The average amount of ground rent was £55 collected yearly. The lease came to a finish on 14 August 2080. Taking into account 54 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of costs.