For anyone whose Morganstown flat is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Morganstown can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 procuring Morganstown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Sam, started to get close to the 80-year threshold with the lease on his leasehold apartment in Morganstown. Having bought his flat two decades ago, the length of the lease was of no bearing. As luck would have it, he became aware that he would soon be paying an inflated amount for Extending the lease. Sam was able to extend his lease just ahead of time in July. Sam and the freeholder in the end settled on a premium of £5,500 . If he not met the deadline, the figure would have escalated by a minimum £1,050.
Ms Erin Baker took over the lease of a one bedroom flat in Morganstown in September 2001. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar properties in Morganstown with an extended lease were worth £285,000. The mid-range ground rent payable was £45 billed yearly. The lease elapsed on 13 October 2095. Taking into account 71 years left we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
Last month we were phoned by Dr Katie Hernández , who completed a newly refurbished apartment in Morganstown in October 2012. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Morganstown with 100 year plus lease were worth £225,800. The mid-range ground rent payable was £60 invoiced per annum. The lease ended on 20 June 2084. Considering the 60 years remaining we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus fees.