With a long leasehold property in Moreton, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear 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 number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years left. Residents in Moreton with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years left, under the current legislation the freeholder can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Moreton with more than 100 years outstanding 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancers that we work with undertake Moreton 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 conveyancer we work with provide it.
Sebastian owned a studio apartment in Moreton being marketed with a lease of just over 59 years remaining. Sebastian informally contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Dr Omar López who, having owned a garden flat in Moreton in January 2000. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable flats in Moreton with 100 year plus lease were in the region of £198,400. The mid-range amount of ground rent was £65 collected quarterly. The lease ran out in 2085. Given that there were 59 years left we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.
In 2009 we were called by Mr and Mrs. S Lefebvre who, having took over the lease of a basement flat in Moreton in October 2000. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Moreton with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease finished on 28 July 2096. Having 70 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.