Mobberley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Mobberley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Mobberley you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Mobberley with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service will provide you increased control over the value of your Mobberley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her basement flat in Mobberley, Francesca commenced the lease extension process as the 80 year threshold was rapidly nearing. The lease extension was concluded in September 2007. The freeholder’s costs were negotiated to about 550 pounds.
In 2014 we were called by Mr and Mrs. U Khan who, having took over the lease of a basement apartment in Mobberley in November 1996. We are asked if we could estimate the premium could be to extend the lease by ninety years. Identical residencies in Mobberley with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ended on 10 June 2098. Given that there were 73 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2009 we were e-mailed by Mr and Mrs. H Taylor who, having owned a first floor apartment in Mobberley in April 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Mobberley with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £60 billed yearly. The lease ended on 3 August 2087. Taking into account 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including professional charges.