There is no doubt about it a leasehold flat or house in Mosborough is a wasting asset as a result of the shortening lease. If the residual term has, more than 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Mosborough will meet the qualifying criteria; however a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Mosborough with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service will provide you enhanced control over the value of your Mosborough leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her ground floor apartment in Mosborough, Georgina commenced the lease extension process as the eighty year threshold was rapidly advancing. The lease extension was finalised in May 2015. The landlord’s charges were negotiated to about 700 pounds.
Last month we were approach by Mr and Mrs. Y Flores , who acquired a first floor flat in Mosborough in May 2010. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Mosborough with 100 year plus lease were in the region of £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease lapsed in 2085. Taking into account 60 years unexpired we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus legals.
In 2009 we were called by Mr and Mrs. M Wood who, having bought a basement apartment in Mosborough in April 2010. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable premises in Mosborough with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 billed yearly. The lease ended on 2 May 2096. Taking into account 71 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.