It’s an underpublicised certainty that a Mobberley residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Mobberley property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term dips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Mobberley will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Mobberley with over 100 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Retaining our service will provide you increased control over the value of your Mobberley leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Mason, started to get near to the eighty-year mark with the lease on his first floor apartment in Mobberley. Having bought his home two decades ago, the lease term was of no interest. Luckily, he became aware that he needed to take action soon on a lease extension. Mason arranged for a lease extension just under the wire in April. Mason and the freeholder via the management company subsequently agreed on a premium of £5,000 . If he not met the deadline, the premium would have escalated by at least £1,125.
Last June we were contacted by Mr Zachary Bell , who was assigned a lease of a recently refurbished flat in Mobberley in October 2002. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparable properties in Mobberley with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £50 collected quarterly. The lease elapsed on 13 June 2101. Considering the 75 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Last Summer we were e-mailed by Mr A Sharif , who was assigned a lease of a garden apartment in Mobberley in May 1999. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable homes in Mobberley with 100 year plus lease were valued about £250,400. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated on 26 May 2090. Having 64 years outstanding we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus legals.