Marston Moretaine residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancers that we work with handle Marston Moretaine lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing unsuccessful correspondence with the freeholder of her leasehold apartment in Marston Moretaine, Rachael initiated the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was finalised in August 2010. The freeholder’s costs were negotiated to approximately 650 GBP.
Dr Eleanor Collins took over the lease of a basement apartment in Marston Moretaine in May 2008. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical homes in Marston Moretaine with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease ran out in 2105. Taking into account 80 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
In 2011 we were called by Mr and Mrs. H Khan who, having bought a studio apartment in Marston Moretaine in March 2012. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative properties in Marston Moretaine with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 billed every twelve months. The lease came to a finish on 10 February 2085. Taking into account 60 years outstanding we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.