Moreton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Moreton tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Moreton you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| National Westminster Bank | |
| The Mortgage Works |
Retaining our service will provide you increased control over the value of your Moreton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a high value apartment in Moreton being sold with a lease of just over fifty eight years remaining. Andrew on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Andrew to exercise his statutory right. Andrew procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Dr Y Morel took over the lease of a one bedroom flat in Moreton in August 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Moreton with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 invoiced per annum. The lease ran out in 2100. Given that there were 74 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Autumn we were contacted by Dr F Gómez , who was assigned a lease of a studio flat in Moreton in August 1997. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar properties in Moreton with an extended lease were valued about £166,400. The mid-range ground rent payable was £60 collected every twelve months. The lease expired in 2080. Taking into account 54 years remaining we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus legals.