Unfortunately that a Mossley residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Mossley property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Mossley will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
The lawyers 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.
Last year Aaron, started to get near to the eighty-year mark with the lease on his first floor flat in Mossley. In buying his property two decades ago, the length of the lease was of no significance. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Aaron was able to extend his lease at the eleventh hour in January. Aaron and the landlord ultimately settled on an amount of £5,000 . If the lease had descended to less than eighty years, the sum would have escalated by at least £950.
Mr S Díaz was assigned a lease of a studio apartment in Mossley in April 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Mossley with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 collected per annum. The lease finished in 2094. Having 68 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
Dr Alexander Baker purchased a ground floor flat in Mossley in October 2005. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparable homes in Mossley with a long lease were valued around £285,000. The average ground rent payable was £55 billed every twelve months. The lease lapsed on 27 August 2105. Having 79 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.