Moreton leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Moreton will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Moreton with over 100 years remaining 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Santander |
Lease extensions in Moreton can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Moreton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jayden, came critically near to the 80-year mark with the lease on his purpose- built apartment in Moreton. In buying his home 18 years previously, the lease term was of little interest. Luckily, he noticed he needed to take action soon on Extending the lease. Jayden was able to extend his lease just under the wire in January. Jayden and the landlord in the end settled on a premium of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £1,050.
In 2013 we were approached by Mr Tyler Norbert who, having moved into a studio flat in Moreton in July 1996. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparable residencies in Moreton with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 billed quarterly. The lease ran out in 2104. Taking into account 78 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.
In 2011 we were e-mailed by Ms L Mitchell who, having took over the lease of a purpose-built flat in Moreton in January 2002. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical flats in Moreton with an extended lease were valued about £191,000. The average ground rent payable was £65 billed annually. The lease ended on 1 July 2084. Considering the 58 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of fees.