When it comes to domestic leasehold property in Moston, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years remaining. Anyone in Moston with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has under 80 years left, under the current legislation the landlord can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Moston,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Moston valuers.
Subsequent to unsuccessful discussions with the freeholder of her garden apartment in Moston, Erin started the lease extension process as the 80 year deadline was quickly approaching. The transaction completed in February 2010. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were called by Mr and Mrs. U Rivera who, having moved into a garden flat in Moston in September 2008. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative flats in Moston with an extended lease were valued about £208,600. The average ground rent payable was £60 invoiced yearly. The lease expired on 16 October 2082. Taking into account 57 years unexpired we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus costs.
In 2013 we were contacted by Mr and Mrs. D Green who, having moved into a ground floor flat in Moston in September 1995. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable premises in Moston with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease elapsed in 2102. Considering the 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.