Chances are that if you own a flat in Motspur Park you actually own a long leasehold interest over your property
Leasehold properties in Motspur Park with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Yorkshire 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. |
Using our service gives you enhanced control over the value of your Motspur Park leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luke owned a high value apartment in Motspur Park being marketed with a lease of fraction over fifty eight years remaining. Luke on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Luke to invoke his statutory right. Luke obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last year we were e-mailed by Mrs U Mason , who purchased a newly refurbished flat in Motspur Park in July 1995. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical residencies in Motspur Park with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish in 2104. Given that there were 79 years remaining we estimated the compensation to the landlord for the lease extension to be between £7,600 and £8,800 plus legals.
An example of a Lease Extension decision 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 60.43 years.