There is no doubt about it a leasehold property in Moreton is a wasting asset as a result of the shortening lease. Where the residual term has, more than one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Moreton will qualify for this right; that being said a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Moreton with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Moreton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Leon, came precariously close to the 80-year mark with the lease on his basement flat in Moreton. In buying his flat 18 years ago, the length of the lease was of minimal importance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Leon arranged for a lease extension just under the wire in March. Leon and the freeholder eventually settled on sum of £5,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,125.
Last month we were called by Mr and Mrs. V Michel , who purchased a one bedroom apartment in Moreton in July 2011. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable properties in Moreton with an extended lease were worth £193,400. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish on 16 March 2084. Taking into account 59 years remaining we calculated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.
Last Winter we were phoned by Ms O Sánchez , who bought a first floor apartment in Moreton in March 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable premises in Moreton with an extended lease were worth £250,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 16 June 2095. Given that there were 70 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.