The value of Moseley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is less than eighty years
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
The lawyers that we work with procure Moseley 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 lawyer we work with provide it.
Last Winter Jayden, came seriously close to the eighty-year mark with the lease on his leasehold apartment in Moseley. Having bought his flat twenty years previously, the length of the lease was of little interest. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Jayden arranged for a lease extension just under the wire last July. Jayden and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £1,150.
Last year we were phoned by Dr Benjamin Jones , who moved into a garden apartment in Moseley in March 2007. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Moseley with a long lease were worth £191,000. The average ground rent payable was £65 billed monthly. The lease finished in 2083. Considering the 58 years outstanding we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including fees.
Dr N García bought a one bedroom flat in Moseley in May 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Similar premises in Moseley with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed yearly. The lease lapsed on 11 July 2094. Considering the 69 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.