Moseley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Moseley tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Moseley you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you better 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 want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Tommy, started to get close to the 80-year threshold with the lease on his ground floor apartment in Moseley. Having purchased his home 18 years ago, the lease term was of no importance. Thankfully, he recognised he needed to take action soon on Extending the lease. Tommy extended the lease just under the wire in April. Tommy and the landlord who owned the flat above subsequently settled on sum of £6,000 . If the lease had dropped lower than 80 years, the amount would have become more exhorbitant by at least £850.
Last year we were phoned by Mr Elijah Harris , who purchased a purpose-built apartment in Moseley in June 2001. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparative properties in Moseley with an extended lease were worth £173,800. The mid-range amount of ground rent was £60 billed annually. The lease end date was in 2080. Having 55 years unexpired we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.
Mrs Y Walker purchased a first floor flat in Moseley in March 2008. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Moseley with a long lease were worth £235,200. The mid-range ground rent payable was £45 billed yearly. The lease ended on 18 September 2091. Considering the 66 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.