When it comes to domestic leasehold property in Moreton, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less 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. Once the lease term has under 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Moreton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Moreton valuers.
After unsuccessful negotiations with the landlord of her leasehold flat in Moreton, Maisie commenced the lease extension process as the eighty year deadline was rapidly nearing. The transaction was finalised in May 2006. The landlord’s costs were kept to an absolute minimum.
In 2012 we were approached by Dr H André who, having moved into a recently refurbished flat in Moreton in May 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Moreton with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 collected per annum. The lease came to a finish on 27 April 2079. Taking into account 54 years remaining we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including legals.
Dr P Bell owned a one bedroom flat in Moreton in February 2003. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Moreton with 100 year plus lease were valued about £225,400. The mid-range amount of ground rent was £45 billed annually. The lease expired in 2089. Taking into account 64 years outstanding we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus costs.