Mossley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Mossley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Mossley you really ought to see if your lease has between seventy and 90 years remaining. There are good reasons why a Mossley flat owner with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Mossley can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Mossley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Henry owned a conversion apartment in Mossley on the market with a lease of a little over sixty years outstanding. Henry informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Ms U Hall completed a first floor flat in Mossley in May 2008. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative homes in Mossley with 100 year plus lease were valued about £227,800. The mid-range ground rent payable was £45 billed per annum. The lease terminated on 6 February 2091. Taking into account 65 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.
In 2010 we were phoned by Dr Nathan Pérez who, having took over the lease of a one bedroom flat in Mossley in October 2006. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar flats in Mossley with an extended lease were worth £275,000. The average ground rent payable was £55 collected annually. The lease came to a finish on 6 March 2102. Considering the 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.