Moss Nook leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Leasehold owners in Moss Nook will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Moss Nook,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Moss Nook valuers.
Last year Leo, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Moss Nook. Having purchased his home twenty years ago, the length of the lease was of no interest. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Leo arranged for a lease extension just under the wire in April. Leo and the landlord eventually settled on a premium of £6,000 . If he not met the deadline, the figure would have gone up by a minimum £1,150.
In 2013 we were phoned by Mr and Mrs. Y Jones who, having acquired a first floor flat in Moss Nook in September 2011. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Moss Nook with 100 year plus lease were worth £206,200. The average ground rent payable was £55 billed every twelve months. The lease ran out in 2081. Having 56 years unexpired we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
In 2009 we were phoned by Mr Eli Bernard who, having purchased a basement flat in Moss Nook in August 2011. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Similar homes in Moss Nook with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ran out in 2101. Taking into account 76 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.