With a residential leasehold property in Moulton, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years left. Leasehold owners in Moulton with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has below eighty years outstanding, under the relevant Act the freeholder can calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Moulton,the lease extension lawyers 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.
Off the back of protracted negotiations with the freeholder of her purpose-built flat in Moulton, Molly initiated the lease extension process as the eighty year mark was quickly advancing. The legal work was concluded in August 2008. The landlord’s charges were kept to an absolute minimum.
In 2014 we were phoned by Dr Aimee Rose who, having purchased a one bedroom apartment in Moulton in October 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Moulton with a long lease were valued about £243,000. The average ground rent payable was £65 invoiced every twelve months. The lease terminated on 16 May 2088. Considering the 63 years left we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of costs.
Last Christmas we were phoned by Mr B André , who purchased a one bedroom flat in Moulton in February 2000. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparable residencies in Moulton with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 invoiced quarterly. The lease ran out on 9 August 2077. Taking into account 52 years outstanding we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including legals.