The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Mobberley may extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Mobberley lease extension. Shelving the costs now simply increases the premium you will eventually have to pay for a lease extension.
Leasehold properties in Mobberley with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Mobberley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mobberley valuers.
Adam owned a studio flat in Mobberley on the market with a lease of a little over 72 years outstanding. Adam informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Adam to invoke his statutory right. Adam procured expert advice and secured satisfactory deal informally and readily saleable.
Last Summer we were e-mailed by Ms Georgia Moore , who completed a one bedroom apartment in Mobberley in September 2009. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical flats in Mobberley with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 billed monthly. The lease elapsed on 12 March 2091. Given that there were 66 years remaining we estimated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus professional charges.
Dr K Harris bought a basement flat in Mobberley in April 2000. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Identical properties in Mobberley with 100 year plus lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced per annum. The lease terminated in 2080. Given that there were 55 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including professional charges.