As the the remaining lease term of a Moorends residential lease diminished so does its value and therefore the value of your property. If the residual term has, more than 125 years remaining then this decrease may be fractional however there will become a stage when a lease has under than 80 years unexpired 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 main rational as to why you should extend the lease sooner than later. Many flat owners in Moorends will meet the qualifying criteria; that being said a lawyer will be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Moorends,the lease extension lawyers 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.
Jake was the the leasehold proprietor of a 2 bedroom flat in Moorends being sold with a lease of a little over fifty eight years remaining. Jake informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jake to invoke his statutory right. Jake procured expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2010 we were called by Mrs E Edwards who, having took over the lease of a first floor apartment in Moorends in August 1995. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar premises in Moorends with an extended lease were in the region of £290,000. The average ground rent payable was £55 billed every twelve months. The lease finished in 2106. Having 80 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.
Last Spring we were phoned by Dr B Cook , who purchased a garden apartment in Moorends in September 2012. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparative properties in Moorends with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 collected yearly. The lease ended on 28 June 2086. Having 60 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus professional charges.