Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Moreton. Inevitably, the length of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Moreton have the legal entitlement to extend the lease for an additional ninety years under legislation. Please give due deliberation before putting off your Moreton lease extension. Holding off that expense now likely increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Moreton with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Moreton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Isaac, came critically near to the eighty-year threshold with the lease on his garden apartment in Moreton. Having purchased his home two decades ago, the length of the lease was of little interest. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Isaac extended the lease just under the wire last August. Isaac and the landlord ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the price would have gone up by a minimum £850.
In 2014 we were called by Mr and Mrs. I Sharif who, having bought a first floor apartment in Moreton in January 2007. The question was if we could estimate the premium could be to prolong the lease by ninety years. Identical flats in Moreton with an extended lease were valued around £242,600. The average amount of ground rent was £45 collected yearly. The lease ended on 1 June 2093. Considering the 67 years outstanding we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus expenses.
In 2013 we were called by Ms Rebecca Michel who, having bought a recently refurbished flat in Moreton in May 2011. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable residencies in Moreton with a long lease were worth £280,000. The average amount of ground rent was £55 billed quarterly. The lease finished in 2104. Given that there were 78 years left we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.