With a residential leasehold property in Moss Nook, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Moss Nook with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has less than eighty years left, under the relevant statute the landlord is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Moss Nook with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Moss Nook,the lease extension experts that we work with will always be happy 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 discussions with the freeholder of her ground floor apartment in Moss Nook, Madeleine initiated the lease extension process as the eighty year deadline was rapidly approaching. The legal work was concluded in August 2013. The landlord’s costs were restricted to less than 450 pounds.
In 2011 we were called by Dr W Walker who, having acquired a purpose-built apartment in Moss Nook in January 1999. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Moss Nook with an extended lease were worth £290,000. The average amount of ground rent was £45 invoiced monthly. The lease elapsed in 2099. Taking into account 73 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
Last Autumn we were called by Dr H Laurent , who moved into a one bedroom flat in Moss Nook in September 2003. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Moss Nook with an extended lease were worth £240,600. The average ground rent payable was £60 billed annually. The lease terminated in 2088. Considering the 62 years remaining we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including professional charges.