As the length of the unexpired term of a Motspur Park domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, over 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner than later. Most flat owners in Motspur Park will qualify for this right; nevertheless a conveyancing solicitor will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Motspur Park with in excess of 100 years outstanding 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 reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service will provide 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Thomas owned a high value flat in Motspur Park being marketed with a lease of a little over 72 years left. Thomas on an informal basis approached his freeholder a well known London-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 initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Thomas to invoke his statutory right. Thomas procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
In 2012 we were contacted by Mr and Mrs. E Reed who, having completed a one bedroom flat in Motspur Park in February 2000. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical premises in Motspur Park with an extended lease were in the region of £295,000. The average ground rent payable was £45 billed per annum. The lease elapsed in 2100. Considering the 74 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension decision for a Motspur Park residence 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 related to 1 flat. The remaining number of years on the lease was 60.43 years.