There is no doubt about it a leasehold flat or house in Moulton is a wasting asset as a result of the shortening lease. If the residual term has, more than 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Moulton will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Moulton with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Moulton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Kian, started to get close to the 80-year mark with the lease on his two bedroom apartment in Moulton. Having bought his home two decades ago, the unexpired term was of minimal interest. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Kian arranged for a lease extension at the eleventh hour last June. Kian and the freeholder eventually agreed on sum of £5,500 . If the lease had dropped lower than eighty years, the sum would have increased by at least £975.
In 2014 we were phoned by Dr Ellen Nelson who, having took over the lease of a one bedroom apartment in Moulton in October 2009. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Similar properties in Moulton with an extended lease were valued about £206,200. The mid-range ground rent payable was £55 collected every twelve months. The lease ended in 2081. Taking into account 56 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
Last Summer we were contacted by Mr and Mrs. M Lambert , who completed a studio flat in Moulton in January 1996. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Moulton with a long lease were valued about £300,000. The average amount of ground rent was £50 billed yearly. The lease lapsed on 4 May 2101. Considering the 76 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.