Moorends leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Moorends tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Moorends you really ought to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Moorends leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Moorends with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Moorends,the lease extension experts 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 Moorends valuers.
Off the back of lengthy negotiations with the freeholder of her leasehold flat in Moorends, Lydia commenced the lease extension process as the 80 year threshold was rapidly approaching. The transaction completed in September 2008. The freeholder’s charges were negotiated to slightly above 450 GBP.
In 2014 we were called by Mr Lucas Roux who, having completed a studio apartment in Moorends in March 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparative residencies in Moorends with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed quarterly. The lease concluded on 1 October 2098. Having 73 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
Ms G Turner completed a one bedroom flat in Moorends in June 2008. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative residencies in Moorends with a long lease were worth £264,000. The average ground rent payable was £60 billed quarterly. The lease lapsed on 14 June 2078. Considering the 53 years as a residual term we estimated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of costs.