Moreton leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Moreton will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Moreton with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Moreton,the lease extension lawyers 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.
Following protracted negotiations with the landlord of her leasehold apartment in Moreton, Naomi initiated the lease extension process as the 80 year mark was fast approaching. The lease extension completed in October 2008. The landlord’s costs were restricted to below 650 pounds.
Last Spring we were contacted by Mr Tommy Leroy , who completed a basement apartment in Moreton in February 2011. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable premises in Moreton with an extended lease were worth £168,800. The mid-range ground rent payable was £60 collected monthly. The lease finished in 2079. Having 55 years outstanding we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including fees.
Ms Alexandra Sánchez owned a one bedroom apartment in Moreton in August 2012. The question was if we could estimate the premium would be to extend the lease by ninety years. Comparable premises in Moreton with an extended lease were in the region of £235,200. The average amount of ground rent was £45 invoiced annually. The lease came to a finish in 2090. Taking into account 66 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.