Unfortunately that a Moreton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Moreton property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay half 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 additional value that a lease extension will add the property The majority of flat owners in Moreton will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining 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 in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Halifax | |
| Santander | |
| Skipton Building Society |
Using our service will provide you enhanced control over the value of your Moreton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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.
Two years ago James, came perilously close to the eighty-year mark with the lease on his garden apartment in Moreton. Having purchased his flat 18 years ago, the length of the lease was of minimal concern. by good luck, he realised he needed to take steps soon on Extending the lease. James extended the lease just under the wire last May. James and the landlord in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the price would have gone up by a minimum £975.
In 2012 we were approached by Ms L Morgan who, having acquired a garden apartment in Moreton in June 2007. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Identical flats in Moreton with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 billed annually. The lease finished in 2096. Considering the 70 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Last Winter we were phoned by Mr and Mrs. P Smith , who purchased a first floor flat in Moreton in August 2010. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Moreton with an extended lease were valued about £246,800. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded on 9 April 2076. Taking into account 50 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 plus fees.