The only way is down when it comes to Mobberley lease terms. Mobberley properties that have a remaining term shorter than 80 years will de-escalate in market price even faster, and the cost to extend your lease will go up.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Mobberley can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Mobberley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Rory, started to get close to the eighty-year threshold with the lease on his studio flat in Mobberley. Having bought his flat 18 years previously, the length of the lease was of no concern. As luck would have it, he recognised he would soon be paying an inflated amount for Extending the lease. Rory extended the lease just under the wire in January. Rory and the freeholder subsequently agreed on an amount of £5,000 . If the lease had dipped below 80 years, the sum would have increased by at least £975.
In 2009 we were e-mailed by Dr R Garcia who, having purchased a one bedroom flat in Mobberley in May 2010. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable premises in Mobberley with a long lease were in the region of £233,200. The average ground rent payable was £60 billed per annum. The lease expiry date was in 2087. Given that there were 61 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus fees.
Dr Ellie David owned a garden apartment in Mobberley in May 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable flats in Mobberley with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 billed every twelve months. The lease expiry date was in 2076. Taking into account 50 years remaining we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including costs.