When it comes to residential leasehold premises in Mossley, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Leasehold owners in Mossley with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has under eighty years left, under the relevant Act the freeholder can calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Mossley,the lease extension experts that we work with will always be prepared 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 the wake of eight months of protracted correspondence with the landlord of her purpose-built apartment in Mossley, Victoria started the lease extension process as the 80 year threshold was quickly approaching. The transaction was concluded in February 2008. The landlord’s charges were kept to an absolute minimum.
Dr Lewis Edwards was assigned a lease of a one bedroom flat in Mossley in May 2006. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Mossley with a long lease were in the region of £265,000. The average amount of ground rent was £55 collected annually. The lease end date was on 17 June 2099. Having 74 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Spring we were contacted by Dr Callum Simon , who bought a garden flat in Mossley in March 2005. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Mossley with 100 year plus lease were worth £166,400. The average ground rent payable was £60 billed annually. The lease terminated on 18 July 2079. Given that there were 54 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus costs.