The closer a residential lease in Moor Row nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner than later. Many flat owners in Moor Row will qualify for this right; however a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Moor Row with in excess of 100 years left on the lease are often 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 merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Moor Row,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Moor Row valuers.
Max was the the leasehold owner of a studio flat in Moor Row being sold with a lease of a few days over 61 years outstanding. Max on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last Spring we were contacted by Dr Hugo Morel , who took over the lease of a newly refurbished flat in Moor Row in August 2010. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable residencies in Moor Row with an extended lease were valued around £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease concluded on 1 October 2083. Considering the 58 years remaining we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.
Mr Ollie Taylor purchased a basement flat in Moor Row in August 2009. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative properties in Moor Row with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed yearly. The lease lapsed on 20 May 2103. Considering the 78 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.