Unfortunately 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 taken for granted in the first few years due to the depreciation being disguised by increases in the Moulton property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Moulton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank |
The conveyancing solicitors 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 lawyer we work with provide it.
In the wake of 9 months of lengthy discussions with the landlord of her purpose-built flat in Moulton, Eleanor commenced the lease extension process as the eighty year threshold was fast nearing. The lease extension was concluded in October 2013. The freeholder’s fees were negotiated to a tad over 700 GBP.
Last Christmas we were called by Mr and Mrs. B Reed , who bought a one bedroom apartment in Moulton in August 2001. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Moulton with an extended lease were worth £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed on 22 January 2084. Taking into account 58 years left we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.
Dr Alisha Ward purchased a one bedroom apartment in Moulton in June 2009. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative flats in Moulton with a long lease were valued about £205,000. The average amount of ground rent was £50 billed annually. The lease ran out on 12 July 2104. Considering the 78 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.