Unfortunately that a Mosborough residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Mosborough property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Mosborough will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Mosborough with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Mosborough,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 experience and the close ties they enjoy with Mosborough valuers.
Off the back of lengthy discussions with the freeholder of her studio apartment in Mosborough, Laura started the lease extension process as the 80 year threshold was rapidly advancing. The lease extension was finalised in June 2012. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. W James who, having was assigned a lease of a ground floor apartment in Mosborough in March 1999. The question was if we could estimate the price could be to prolong the lease by 90 years. Comparable properties in Mosborough with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out on 9 April 2104. Given that there were 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.
Last year we were called by Mr Logan Thompson , who bought a ground floor flat in Mosborough in June 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar premises in Mosborough with 100 year plus lease were worth £198,400. The mid-range amount of ground rent was £65 collected monthly. The lease lapsed in 2084. Given that there were 59 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.