There is no doubt about it a leasehold property in Moor Row is a wasting asset as a result of the shortening lease. Where the lease has, over 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. The majority of flat owners in Moor Row will qualify for this right; that being said a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Moor Row,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Moor Row valuers.
Seth owned a studio apartment in Moor Row on the market with a lease of a little over sixty years remaining. Seth informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth procured expert advice and was able to make an informed decision and handle with the matter and sell the property.
Dr M Baker took over the lease of a one bedroom flat in Moor Row in April 1999. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Moor Row with an extended lease were valued about £201,200. The mid-range ground rent payable was £55 collected yearly. The lease lapsed on 28 February 2082. Given that there were 56 years remaining we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.
Dr A Miller bought a newly refurbished flat in Moor Row in October 1999. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Moor Row with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 billed monthly. The lease lapsed on 19 June 2102. Having 76 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.