Moston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Moston enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Moston you must investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Moston leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold premises in Moston with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Moston can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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.
Following unsuccessful discussions with the freeholder of her first floor apartment in Moston, Anna initiated the lease extension process as the 80 year deadline was swiftly nearing. The legal work completed in October 2008. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were e-mailed by Mr and Mrs. W François , who moved into a one bedroom flat in Moston in April 1997. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable properties in Moston with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 billed monthly. The lease finished on 18 August 2100. Having 74 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Mrs Y Rodríguez acquired a one bedroom flat in Moston in June 2005. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative residencies in Moston with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease end date was on 28 September 2089. Having 63 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.