With a residential leasehold premises in Motspur Park, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Residents in Motspur Park with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. When a lease has below 80 years left, under the relevant statute the landlord can calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
|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;
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|National Westminster Bank||Mortgage term plus 30 years.|
|Royal Bank of Scotland||Mortgage term plus 30 years.|
|Virgin||85 years at the time of completion. If it's less, we require it to be extended on or before completion.|
Using our service gives you better control over the value of your Motspur Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leon owned a conversion apartment in Motspur Park on the market with a lease of fraction over 61 years outstanding. Leon informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Last Summer we were contacted by Mr and Mrs. L Evans , who was assigned a lease of a first floor apartment in Motspur Park in June 1997. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar flats in Motspur Park with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expired in 2099. Taking into account 76 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Motspur Park flat is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case affected 1 flat. The number of years remaining on the existing lease(s) was 60.43 years.