The nearer a residential lease in Moorends gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Moorends will qualify for this right; that being said a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Moorends with over one hundred years remaining 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service will provide you increased control over the value of your Moorends leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Jackson, started to get near to the eighty-year mark with the lease on his one bedroom flat in Moorends. In buying his home two decades ago, the length of the lease was of minimal concern. Luckily, he became aware that he needed to take action soon on a lease extension. Jackson was able to extend his lease just under the wire last January. Jackson and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If he had missed the deadline, the price would have escalated by a minimum £900.
Dr Michael Walker owned a garden apartment in Moorends in November 2006. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Similar premises in Moorends with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 billed every twelve months. The lease termination date was in 2087. Considering the 61 years remaining we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus expenses.
Last month we were called by Ms Samantha Hall , who took over the lease of a ground floor apartment in Moorends in November 2010. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Moorends with a long lease were worth £260,000. The average ground rent payable was £50 collected per annum. The lease lapsed in 2098. Taking into account 72 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.