When it comes to domestic leasehold premises in Moss Nook, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Leasehold owners in Moss Nook with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has below eighty years remaining, under the current legislation the freeholder can calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Moss Nook,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Moss Nook valuers.
After lengthy correspondence with the landlord of her first floor flat in Moss Nook, Alisha commenced the lease extension process as the 80 year threshold was quickly approaching. The transaction completed in November 2014. The landlord’s charges were kept to an absolute minimum.
In 2011 we were approached by Mr Ryan Scott who, having bought a ground floor flat in Moss Nook in August 1999. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative flats in Moss Nook with an extended lease were worth £285,000. The average amount of ground rent was £45 billed quarterly. The lease concluded on 10 February 2097. Considering the 71 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Ms Alisha Gómez acquired a one bedroom flat in Moss Nook in June 2011. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar premises in Moss Nook with an extended lease were worth £225,800. The mid-range ground rent payable was £60 invoiced annually. The lease came to a finish in 2086. Given that there were 60 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including costs.