The value of Moulton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with more than 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 property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Moulton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Moulton valuers.
Subsequent to protracted negotiations with the freeholder of her first floor apartment in Moulton, Isobel commenced the lease extension process as the eighty year deadline was quickly nearing. The legal work completed in September 2013. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were contacted by Mr and Mrs. L François who, having moved into a purpose-built flat in Moulton in October 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Moulton with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease ended in 2076. Given that there were 51 years as a residual term we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of costs.
Last Spring we were called by Mr and Mrs. V Ali , who moved into a purpose-built flat in Moulton in January 2002. We are asked if we could estimate the price could be for a ninety year lease extension. Identical residencies in Moulton with a long lease were worth £285,000. The mid-range amount of ground rent was £45 billed yearly. The lease finished in 2096. Given that there were 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.