West Moors leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying West Moors residential leaseholders to extend the terms of long leases. If you are a leasehold owner in West Moors you should check if your lease has between 70 and ninety years remaining. There are compelling reasons why a West Moors flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in West Moors,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with West Moors valuers.
Leon owned a 2 bedroom flat in West Moors on the market with a lease of fraction over sixty years outstanding. Leon on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were called by Dr A Girard , who acquired a one bedroom flat in West Moors in November 2001. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable residencies in West Moors with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended on 6 October 2106. Having 80 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
In 2010 we were approached by Mrs Alice Bernard who, having bought a first floor apartment in West Moors in February 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in West Moors with an extended lease were worth £280,000. The mid-range ground rent payable was £45 billed every twelve months. The lease end date was on 2 August 2095. Considering the 69 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.