Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Moorgate. Clearly, the period of lease left shortens over time. This is often overlooked and only becomes a problem when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Moorgate have the right to extend the lease for a further 90 years under legislation. Please give careful deliberation before putting off your Moorgate lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Virgin | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Moorgate,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Moorgate valuers.
Finn was the the leasehold proprietor of a high value apartment in Moorgate being marketed with a lease of a few days over fifty eight years unexpired. Finn informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2014 we were phoned by Mr and Mrs. F Smith who, having bought a one bedroom flat in Moorgate in May 2007. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparable premises in Moorgate with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 billed annually. The lease elapsed on 1 October 2100. Given that there were 74 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Moorgate residence is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case affected 2 flats. The unexpired term was 72.39 years.