Motspur Park leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Flat owners in Motspur Park will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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; |
| Chelsea 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. |
| 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Motspur Park leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide 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.
During the course of the last few months Ryan, came seriously close to the eighty-year mark with the lease on his two bedroom apartment in Motspur Park. In buying his home two decades ago, the lease term was of little significance. Fortunately, he noticed he needed to take steps soon on a lease extension. Ryan was able to extend his lease at the eleventh hour last September. Ryan and the freeholder via the management company eventually agreed on an amount of £5,500 . If the lease had descended below 80 years, the amount would have gone up by a minimum £925.
In 2010 we were phoned by Mr and Mrs. A Wood who, having purchased a one bedroom flat in Motspur Park in November 2010. The question was if we could estimate the price would be to extend the lease by an additional years. Identical premises in Motspur Park with an extended lease were worth £233,200. The average ground rent payable was £60 invoiced yearly. The lease expired on 12 January 2087. Taking into account 61 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of fees.
An example of a Lease Extension decision for a Motspur Park premises 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 as at the valuation date was 60.43 years.