It’s a harsh truth that a Moor Row residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Moor Row property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Moor Row will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Moor Row can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Moor Row lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her purpose-built flat in Moor Row, Yasmin initiated the lease extension process as the eighty year deadline was swiftly approaching. The transaction was concluded in January 2009. The freeholder’s costs were restricted to under 650 GBP.
Last month we were contacted by Ms Y Jones , who purchased a one bedroom flat in Moor Row in August 2005. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable properties in Moor Row with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 collected per annum. The lease termination date was in 2078. Having 52 years unexpired we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus legals.
Last Christmas we were called by Mr and Mrs. A Kelly , who acquired a ground floor apartment in Moor Row in February 2012. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Identical homes in Moor Row with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease expired in 2098. Given that there were 72 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.