Moreton leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Moreton will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Moreton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Moreton valuers.
Riley was the the leasehold owner of a 2 bedroom apartment in Moreton on the market with a lease of fraction over sixty years outstanding. Riley on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Riley to exercise his statutory right. Riley procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2012 we were contacted by Mr and Mrs. L Morris who, having acquired a basement flat in Moreton in July 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparative properties in Moreton with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease lapsed on 25 May 2105. Having 79 years left we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.
Last Spring we were phoned by Mr Gabriel Davies , who was assigned a lease of a one bedroom flat in Moreton in November 2009. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical properties in Moreton with a long lease were in the region of £198,400. The average ground rent payable was £65 invoiced monthly. The lease termination date was on 22 November 2085. Considering the 59 years left we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of expenses.