Northern Moor leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the 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 by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Northern Moor you really ought to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Northern Moor with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Northern Moor can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Northern Moor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aaron owned a studio apartment in Northern Moor on the market with a lease of a little over 61 years remaining. Aaron on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Dr E Torres who, having purchased a one bedroom flat in Northern Moor in March 2003. The question was if we could estimate the premium could be for a ninety year lease extension. Similar flats in Northern Moor with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease elapsed on 22 March 2087. Considering the 62 years as a residual term we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus fees.
Mr and Mrs. W Leroy took over the lease of a garden apartment in Northern Moor in August 1999. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative properties in Northern Moor with a long lease were in the region of £174,200. The mid-range ground rent payable was £55 collected annually. The lease finished in 2076. Given that there were 51 years unexpired we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.