Unfortunately that a Moston residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Moston property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Most leasehold owners in Moston will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Moston with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Moston can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Moston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Toby was the the leasehold owner of a 2 bedroom flat in Moston being sold with a lease of a few days over sixty years outstanding. Toby on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder 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 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last year we were called by Mr L Petit , who purchased a garden flat in Moston in June 2002. The question was if we could approximate the price would be to prolong the lease by an additional years. Comparative residencies in Moston with an extended lease were valued about £295,000. The average amount of ground rent was £50 invoiced annually. The lease expired in 2101. Considering the 75 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.
Last month we were phoned by Dr Muhammad Murphy , who acquired a purpose-built flat in Moston in November 2012. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar homes in Moston with an extended lease were worth £250,400. The average amount of ground rent was £65 billed per annum. The lease lapsed on 12 February 2090. Having 64 years outstanding we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus costs.