Moor Row leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Moor Row enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Moor Row you would be well advised to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Moor Row with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Moor Row can be a difficult process. We recommend you get guidance 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 a wealth of experience dealing with 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.
Last year Jamie, came seriously near to the 80-year mark with the lease on his studio flat in Moor Row. Having purchased his property twenty years ago, the lease term was of little significance. Fortunately, he noticed he needed to take steps soon on a lease extension. Jamie was able to extend his lease at the eleventh hour last March. Jamie and the freeholder ultimately agreed on the final figure of £5,000 . If the lease had fallen lower than 80 years, the figure would have gone up by a minimum £900.
In 2014 we were e-mailed by Mrs Louise King who, having moved into a one bedroom apartment in Moor Row in September 2011. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Moor Row with a long lease were in the region of £252,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease end date was in 2090. Having 65 years outstanding we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of costs.
Dr Kian Petit bought a purpose-built flat in Moor Row in November 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical properties in Moor Row with an extended lease were valued around £191,400. The average amount of ground rent was £55 invoiced monthly. The lease concluded on 24 November 2079. Having 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of costs.