The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Motspur Park can extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Motspur Park lease extension. Shelving the costs now simply increases the amount you will ultimately be required to pay for a lease extension.
Leasehold properties in Motspur Park with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Retaining our service gives you increased 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months John, came critically near to the eighty-year threshold with the lease on his garden apartment in Motspur Park. In buying his flat 18 years previously, the unexpired term was of minimal interest. Fortunately, it dawned on him that he needed to take action soon on a lease extension. John arranged for a lease extension just under the wire last April. John and the landlord subsequently settled on a premium of £5,500 . If he not met the deadline, the sum would have increased by a minimum £1,075.
Mr and Mrs. B Cooper completed a garden flat in Motspur Park in August 1997. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Similar properties in Motspur Park with 100 year plus lease were valued about £210,000. The average ground rent payable was £50 invoiced annually. The lease elapsed in 2106. Considering the 80 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
An example of a Lease Extension decision for a Motspur Park property 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 remaining number of years on the lease was 60.43 years.