Chances are that where you own a flat in Mossley Hill you actually own a long leasehold interest over your property
It is generally accepted 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 equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with procure Mossley Hill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Rory owned a 2 bedroom flat in Mossley Hill being sold with a lease of a little over sixty years remaining. Rory informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Rory to invoke his statutory right. Rory obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr and Mrs. R Martínez owned a garden apartment in Mossley Hill in January 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Mossley Hill with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ended in 2098. Considering the 72 years left we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus costs.
Mrs Y Bonnet took over the lease of a purpose-built apartment in Mossley Hill in September 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Mossley Hill with a long lease were in the region of £233,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease lapsed in 2087. Having 61 years remaining we approximated the premium to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of costs.