When it comes to residential leasehold premises in Mossley, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years left. Anyone in Mossley with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has below eighty years remaining, under the current statute the freeholder is entitled to calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Mossley with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| 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. |
The conveyancing solicitors that we work with procure Mossley 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.
In 2014 Zachary, came perilously close to the 80-year mark with the lease on his ground floor apartment in Mossley. In buying his flat 18 years ago, the unexpired term was of little importance. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Zachary was able to extend his lease just in the nick of time in April. Zachary and the freeholder subsequently agreed on the final figure of £6,000 . If the lease had dropped below 80 years, the premium would have gone up by at least £1,000.
In 2011 we were called by Mr Jake Hall who, having bought a newly refurbished apartment in Mossley in September 2004. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparable homes in Mossley with an extended lease were worth £166,400. The average ground rent payable was £60 invoiced annually. The lease finished in 2080. Given that there were 54 years remaining we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus fees.
In 2014 we were e-mailed by Mr and Mrs. J Michel who, having completed a first floor flat in Mossley in June 1997. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Mossley with an extended lease were worth £227,800. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish on 1 September 2091. Considering the 65 years remaining we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.