Motspur Park leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Motspur Park will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain situations you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Motspur Park can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Motspur Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Jamie, started to get near to the eighty-year threshold with the lease on his basement apartment in Motspur Park. Having purchased his property twenty years previously, the length of the lease was of no relevance. by good luck, he became aware that he would imminently be paying an inflated amount for a lease extension. Jamie arranged for a lease extension just in the nick of time last January. Jamie and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he had missed the deadline, the price would have increased by a minimum £1,075.
Last Summer we were phoned by Dr O Smith , who bought a garden flat in Motspur Park in November 2001. The question was if we could estimate the price would be to extend the lease by a further 90 years. Comparative properties in Motspur Park with an extended lease were valued around £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease came to a finish on 14 September 2104. Having 78 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired term was 60.43 years.