Moseley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Moseley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Moseley you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Moseley leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Elijah owned a high value flat in Moseley being sold with a lease of fraction over 59 years remaining. Elijah on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. A Mercier completed a basement apartment in Moseley in May 1996. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar premises in Moseley with a long lease were worth £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended on 2 April 2098. Having 72 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last Summer we were approach by Mr F Hernández , who took over the lease of a basement flat in Moseley in February 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Moseley with an extended lease were in the region of £261,600. The average ground rent payable was £60 collected monthly. The lease termination date was in 2078. Having 52 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 plus legals.