The value of Moorends leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with procure Moorends lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Edward, started to get near to the eighty-year mark with the lease on his studio apartment in Moorends. Having purchased his property 19 years ago, the lease term was of minimal interest. by good luck, he realised he needed to take action soon on a lease extension. Edward extended the lease just in the nick of time in September. Edward and the landlord ultimately agreed on the final figure of £6,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £975.
Mr Y Norbert bought a one bedroom apartment in Moorends in May 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Moorends with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected monthly. The lease concluded on 13 November 2091. Given that there were 66 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
Dr Caleb Taylor bought a first floor flat in Moorends in July 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Moorends with a long lease were in the region of £275,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2102. Considering the 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.