It’s an underpublicised certainty that a Moulton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Moulton property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Moulton will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Moulton with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Moulton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Sam was the the leasehold owner of a studio flat in Moulton on the market with a lease of just over 61 years remaining. Sam informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. E Edwards purchased a purpose-built flat in Moulton in February 1999. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative premises in Moulton with 100 year plus lease were valued about £257,800. The average ground rent payable was £65 collected yearly. The lease ran out in 2091. Given that there were 65 years as a residual term we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus professional charges.
In 2009 we were called by Mr and Mrs. G González who, having was assigned a lease of a first floor apartment in Moulton in October 1995. The question was if we could estimate the price could be for a 90 year extension to my lease. Comparative premises in Moulton with 100 year plus lease were valued around £191,400. The average amount of ground rent was £55 invoiced quarterly. The lease expiry date was in 2080. Taking into account 54 years outstanding we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including expenses.