Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Motspur Park. Clearly, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Motspur Park have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before putting off your Motspur Park lease extension. Holding off the cost now only increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Motspur Park with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Motspur Park,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Motspur Park valuers.
Half a year ago Dexter, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Motspur Park. Having bought his property two decades ago, the lease term was of minimal interest. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. Dexter was able to extend his lease just ahead of time last January. Dexter and the freeholder ultimately settled on an amount of £5,500 . If he not met the deadline, the figure would have increased by a minimum £1,000.
Last Summer we were e-mailed by Dr C Phillips , who purchased a ground floor flat in Motspur Park in January 1995. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative premises in Motspur Park with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 billed quarterly. The lease concluded on 16 January 2098. Given that there were 72 years remaining we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
An example of a Lease Extension case 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.