Northern Moor leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Northern Moor tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Northern Moor you should see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Northern Moor with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Irrespective of whether you are a tenant or a landlord in Northern Moor,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Northern Moor valuers.
David owned a high value apartment in Northern Moor on the market with a lease of fraction over 59 years outstanding. David informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were David to exercise his statutory right. David procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
In 2014 we were contacted by Mr D Edwards who, having purchased a garden apartment in Northern Moor in April 2002. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar premises in Northern Moor with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed in 2105. Having 79 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
Last Summer we were e-mailed by Mr and Mrs. T Reed , who owned a first floor apartment in Northern Moor in May 2009. The dilemma was if we could approximate the price would be for a 90 year lease extension. Similar flats in Northern Moor with a long lease were valued around £275,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended in 2094. Having 68 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.