Unfortunately that a Moreton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Moreton property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Moreton will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Moreton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Moreton valuers.
Subsequent to lengthy negotiations with the freeholder of her leasehold apartment in Moreton, Leah commenced the lease extension process as the 80 year mark was fast approaching. The lease extension completed in October 2011. The landlord’s fees were negotiated to a tad over 650 pounds.
Last Autumn we were called by Ms Ellie Lewis , who completed a basement apartment in Moreton in November 2006. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Similar residencies in Moreton with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed annually. The lease expired on 8 June 2094. Taking into account 68 years left we approximated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 not including fees.
Mr and Mrs. Y Rodríguez owned a purpose-built apartment in Moreton in November 1999. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Moreton with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 collected yearly. The lease terminated on 8 June 2105. Having 79 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.