Mossley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Mossley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Mossley you must investigate if your lease has between seventy and 90 years left. There are good reasons why a Mossley leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Mossley leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Dexter, came critically near to the 80-year threshold with the lease on his two bedroom apartment in Mossley. Having purchased his home two decades ago, the lease term was of minimal interest. Thankfully, he realised he needed to take steps soon on a lease extension. Dexter arranged for a lease extension at the eleventh hour last June. Dexter and the landlord who owned the flat above eventually settled on a premium of £5,500 . If he failed to meet the deadline, the price would have increased by at least £900.
In 2010 we were contacted by Mr and Mrs. R King who, having took over the lease of a basement apartment in Mossley in November 1997. The question was if we could estimate the premium could be for a ninety year lease extension. Identical homes in Mossley with a long lease were valued around £176,200. The average amount of ground rent was £65 billed per annum. The lease ran out on 6 July 2082. Given that there were 56 years outstanding we approximated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including fees.
Dr N White moved into a first floor apartment in Mossley in November 2007. The question was if we could approximate the price would likely be to extend the lease by 90 years. Similar homes in Mossley with 100 year plus lease were valued around £242,600. The average amount of ground rent was £45 billed per annum. The lease terminated in 2093. Having 67 years outstanding we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of legals.