Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Mossley Hill. Inevitably, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Mossley Hill have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due consideration before putting off your Mossley Hill lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Mossley Hill,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mossley Hill valuers.
Matthew was the the leasehold proprietor of a high value apartment in Mossley Hill on the market with a lease of just over sixty years remaining. Matthew informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Matthew to invoke his statutory right. Matthew procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last month we were approach by Dr S David , who moved into a one bedroom apartment in Mossley Hill in June 1998. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar residencies in Mossley Hill with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease elapsed in 2105. Having 79 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
Dr Stanley André purchased a purpose-built flat in Mossley Hill in February 2001. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Identical properties in Mossley Hill with a long lease were in the region of £275,000. The average amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2094. Given that there were 68 years remaining we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.