As the length of the unexpired term of a Motspur Park domestic lease lessens so does its value and therefore the value of your property. Where the lease has, more than 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Motspur Park will qualify for this right; however a conveyancing solicitor should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Motspur Park,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Motspur Park valuers.
Subsequent to lengthy negotiations with the freeholder of her ground floor flat in Motspur Park, Stephanie commenced the lease extension process as the 80 year threshold was swiftly nearing. The transaction was finalised in May 2010. The freeholder’s charges were restricted to a tad over six hundred pounds.
In 2014 we were called by Mr and Mrs. R Bell who, having took over the lease of a newly refurbished flat in Motspur Park in April 2001. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative homes in Motspur Park with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expired in 2103. Having 78 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of 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 unexpired residue of the current lease was 60.43 years.