Mossley leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Mossley will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Mossley with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Mossley leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish 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.
Kian was the the leasehold owner of a studio flat in Mossley on the market with a lease of a few days over 61 years left. Kian informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Dr E Morel moved into a first floor flat in Mossley in September 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Mossley with a long lease were valued about £176,200. The average ground rent payable was £65 collected monthly. The lease lapsed in 2081. Considering the 56 years left we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 plus legals.
Mr and Mrs. G Green bought a newly refurbished apartment in Mossley in July 2010. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical flats in Mossley with a long lease were in the region of £242,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease concluded on 8 February 2092. Considering the 67 years remaining we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus expenses.