Moreton residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
Leasehold residencies in Moreton with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Moreton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Moreton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Eli, came precariously near to the 80-year mark with the lease on his garden flat in Moreton. Having purchased his property 18 years ago, the lease term was of minimal bearing. by good luck, he noticed he needed to take action soon on Extending the lease. Eli arranged for a lease extension at the eleventh hour last July. Eli and the freeholder via the managing agents subsequently agreed on an amount of £5,500 . If the lease had gone to less than 80 years, the amount would have gone up by at least £1,025.
Mr Daniel Turner purchased a ground floor apartment in Moreton in April 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Moreton with an extended lease were in the region of £215,600. The mid-range ground rent payable was £45 billed quarterly. The lease ended in 2088. Taking into account 62 years remaining we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus costs.
Mrs M Gómez acquired a studio apartment in Moreton in October 1999. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Moreton with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 collected per annum. The lease expired on 26 June 2099. Taking into account 73 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.