Mossley leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease drops below 80 years - otherwise a higher amount will be payable. Leasehold owners in Mossley will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Mossley with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The conveyancing solicitors that we work with undertake 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.
Ethan owned a 2 bedroom apartment in Mossley being marketed with a lease of just over 59 years left. Ethan on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Dr Kirsty Murphy completed a garden flat in Mossley in July 2002. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparative residencies in Mossley with a long lease were worth £256,600. The average ground rent payable was £60 invoiced every twelve months. The lease came to a finish in 2078. Taking into account 52 years remaining we estimated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 not including legals.
Mrs J Richardson bought a ground floor flat in Mossley in February 2002. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical residencies in Mossley with 100 year plus lease were in the region of £218,000. The mid-range ground rent payable was £45 collected every twelve months. The lease end date was in 2089. Given that there were 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including expenses.