Why you should start your Moreton lease extension

Why you should start your Moreton lease extension today:

A Moreton lease depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in Moreton is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Moreton will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.

Banks and Building Societies may decide not to finance a property with a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to become jittery at around 75 years. This will be problematic as and when you need to dispose of or remortgage your flat as it will be practically unmortgageable. Even though you might have no immediate desire to sell but when you do your buyer will have to hold off for a couple of years before being able to commence the legal procedures for an extension to the lease.

Get in touch with one of our Moreton lease extension solicitors or enfranchisement solicitors

Engaging 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Moreton Lease Extension Case Studies:

Naomi, Moreton, Merseyside,

In the wake of 9 months of lengthy discussions with the landlord of her two bedroom apartment in Moreton, Naomi initiated the lease extension process as the 80 year mark was rapidly coming. The legal work was concluded in September 2014. The freeholder’s costs were restricted to a tad over 650 pounds.

Moreton case:

Last Summer we were called by Ms Y Stewart , who owned a one bedroom flat in Moreton in June 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Moreton with 100 year plus lease were worth £173,800. The average amount of ground rent was £65 collected annually. The lease ran out on 7 October 2081. Considering the 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.

Moreton case:

In 2009 we were approached by Mr and Mrs. D Patel who, having moved into a studio flat in Moreton in April 1995. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable residencies in Moreton with an extended lease were worth £235,200. The average amount of ground rent was £45 invoiced every twelve months. The lease expiry date was in 2092. Taking into account 66 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.