The market value of a leasehold property in Moston is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised well before the eighty year threshold. Statute enables Moston qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Moston with over 100 years left 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Moston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Moston valuers.
Noah was the the leasehold proprietor of a studio flat in Moston on the market with a lease of just over 61 years left. Noah on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and secured an acceptable deal informally and readily saleable.
Mr C Jackson was assigned a lease of a basement flat in Moston in June 2006. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable flats in Moston with an extended lease were in the region of £166,800. The average ground rent payable was £50 collected monthly. The lease came to a finish in 2075. Taking into account 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of fees.
Ms Ella Rivera acquired a studio apartment in Moston in June 2009. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparative premises in Moston with an extended lease were valued around £280,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed on 24 July 2095. Considering the 70 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.