When it comes to residential leasehold property in Moreton, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years left. Leasehold owners in Moreton with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has below eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Moreton with over 100 years unexpired on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Moreton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold proprietor of a conversion flat in Moreton on the market with a lease of a few days over fifty eight years outstanding. Oliver informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
In 2011 we were e-mailed by Ms Sophia Adams who, having moved into a basement apartment in Moreton in July 2012. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparable premises in Moreton with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed every twelve months. The lease expiry date was in 2091. Considering the 66 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
Mr and Mrs. W Lambert completed a studio apartment in Moreton in September 2001. The question was if we could approximate the premium would be for a ninety year extension to my lease. Similar homes in Moreton with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease lapsed on 11 April 2102. Having 77 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.