Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Mossley. Clearly, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Mossley have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Mossley lease extension. Holding off the cost now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 freeholder in Mossley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mossley valuers.
In recent months Felix, started to get close to the 80-year threshold with the lease on his basement flat in Mossley. Having bought his property two decades ago, the length of the lease was of minimal significance. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Felix arranged for a lease extension just under the wire last July. Felix and the freeholder via the management company in the end agreed on an amount of £6,000 . If the lease had dropped lower than 80 years, the premium would have escalated by at least £875.
Last year we were contacted by Mr and Mrs. J Torres , who was assigned a lease of a basement apartment in Mossley in November 1997. The question was if we could approximate the price would be to extend the lease by 90 years. Comparative residencies in Mossley with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease came to a finish in 2076. Given that there were 56 years remaining we calculated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus professional charges.
Last Christmas we were approach by Mr Max Rogers , who moved into a basement apartment in Mossley in September 1997. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparative premises in Mossley with an extended lease were in the region of £237,600. The average ground rent payable was £45 collected every twelve months. The lease came to a finish on 14 June 2087. Considering the 67 years left we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of costs.