With a long leasehold property in Mossley Hill, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than eighty years left. Leasehold owners in Mossley Hill with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once a lease has under eighty years left, under the relevant legislation the landlord can calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Mossley Hill with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Mossley Hill,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 Mossley Hill valuers.
Half a year ago Eli, came perilously close to the 80-year mark with the lease on his basement apartment in Mossley Hill. Having bought his home 19 years ago, the lease term was of little concern. Luckily, he recognised he would imminently be paying way over the odds for Extending the lease. Eli extended the lease at the eleventh hour last July. Eli and the freeholder in the end agreed on an amount of £5,500 . If he not met the deadline, the figure would have gone up by at least £1,075.
Dr N François owned a ground floor apartment in Mossley Hill in August 1997. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparative residencies in Mossley Hill with 100 year plus lease were worth £233,200. The mid-range ground rent payable was £60 billed per annum. The lease concluded in 2087. Taking into account 61 years remaining we approximated the premium to the landlord to extend the lease to be between £22,800 and £26,400 not including costs.
In 2011 we were e-mailed by Mr and Mrs. S Bonnet who, having was assigned a lease of a one bedroom flat in Mossley Hill in June 2006. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative residencies in Mossley Hill with an extended lease were in the region of £171,800. The average amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2076. Taking into account 50 years unexpired we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus professional charges.