It’s an underpublicised truth that a Mossley Hill residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Mossley Hill property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Mossley Hill will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Mossley Hill with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Ali was the the leasehold owner of a 2 bedroom apartment in Mossley Hill being sold with a lease of fraction over fifty eight years unexpired. Ali on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ali to invoke his statutory right. Ali procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2010 we were called by Mr and Mrs. E Rivera who, having owned a first floor apartment in Mossley Hill in July 2007. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparable residencies in Mossley Hill with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease concluded in 2092. Given that there were 67 years remaining we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 not including professional charges.
Last April we were contacted by Mrs Olivia Lefebvre , who moved into a recently refurbished apartment in Mossley Hill in November 2003. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Similar properties in Mossley Hill with a long lease were in the region of £206,200. The mid-range ground rent payable was £60 collected monthly. The lease terminated on 3 June 2081. Having 56 years as a residual term we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.