For anyone whose Moston flat is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland |
Engaging our service gives you increased control over the value of your Moston leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Austin, started to get close to the 80-year mark with the lease on his garden flat in Moston. In buying his property 19 years ago, the length of the lease was of little bearing. Thankfully, he noticed he would imminently be paying way over the odds for a lease extension. Austin arranged for a lease extension just in the nick of time last July. Austin and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had slipped to less than 80 years, the price would have gone up by a minimum £975.
In 2011 we were called by Mrs G Laurent who, having purchased a ground floor flat in Moston in June 1996. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical flats in Moston with 100 year plus lease were valued around £225,800. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish on 8 May 2086. Having 60 years remaining we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus professional charges.
In 2012 we were e-mailed by Mr T Fournier who, having purchased a ground floor flat in Moston in March 1997. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Identical premises in Moston with an extended lease were valued about £210,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease terminated on 26 October 2106. Taking into account 80 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.