There is no doubt about it a leasehold property in Moseley is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner rather than later. Most flat owners in Moseley will qualify for this right; however a lawyer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Charlie owned a studio flat in Moseley being marketed with a lease of fraction over 61 years left. Charlie informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Charlie to invoke his statutory right. Charlie procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
In 2010 we were contacted by Mr U Hall who, having purchased a one bedroom apartment in Moseley in October 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative properties in Moseley with a long lease were in the region of £200,800. The average amount of ground rent was £65 invoiced monthly. The lease termination date was in 2086. Considering the 60 years outstanding we estimated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including costs.
Dr Holly Davis completed a first floor apartment in Moseley in June 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Moseley with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ran out on 2 February 2097. Given that there were 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.