Moreton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Moreton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Moreton you would be well advised to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Moreton can be a difficult process. We recommend you procure 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 a wealth of experience 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.
Connor owned a high value flat in Moreton being sold with a lease of just over fifty eight years left. Connor on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2009 we were e-mailed by Ms O Allen who, having moved into a basement apartment in Moreton in January 2003. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative flats in Moreton with an extended lease were in the region of £265,000. The average amount of ground rent was £50 billed per annum. The lease ended on 20 November 2099. Considering the 74 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last month we were called by Mr and Mrs. T Patel , who was assigned a lease of a ground floor apartment in Moreton in January 2011. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Similar flats in Moreton with an extended lease were worth £166,400. The mid-range amount of ground rent was £60 billed annually. The lease ended in 2079. Taking into account 54 years remaining we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of legals.