The only way is down when it comes to Moorgate lease terms. Moorgate properties that have a residual term fewer than 80 years will reduce in value even faster, and the cost to extend your lease will rise.
Leasehold properties in Moorgate with over 100 years left 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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 also be not less than 75 years at the outset of the mortgage. |
| 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 undertake Moorgate 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 conveyancer we work with provide it.
During the course of the last few months Jayden, started to get near to the 80-year mark with the lease on his ground floor apartment in Moorgate. In buying his home two decades ago, the lease term was of minimal interest. Luckily, he realised he needed to take action soon on a lease extension. Jayden was able to extend his lease just ahead of time last September. Jayden and the landlord who owned the flat above eventually settled on an amount of £6,000 . If the lease had dropped below eighty years, the amount would have become more exhorbitant by at least £1,125.
Mrs Shannon Rodríguez was assigned a lease of a recently refurbished flat in Moorgate in September 2000. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Comparative premises in Moorgate with an extended lease were worth £189,000. The average ground rent payable was £55 billed every twelve months. The lease concluded on 15 May 2078. Having 53 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 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 was in relation to 2 flats. The remaining number of years on the lease was 72.39 years.