The nearer a domestic lease in Morecambe gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 125 years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Morecambe will qualify for this right; nevertheless a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Morecambe 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 conveyancer we work with provide it.
Eliot owned a conversion flat in Morecambe on the market with a lease of fraction over 59 years remaining. Eliot on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Mr Jude Kelly took over the lease of a ground floor apartment in Morecambe in July 2001. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Morecambe with a long lease were valued around £295,000. The mid-range ground rent payable was £45 billed per annum. The lease ended in 2101. Given that there were 75 years unexpired we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.
In 2009 we were approached by Mr and Mrs. A Phillips who, having bought a garden apartment in Morecambe in March 2005. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative flats in Morecambe with a long lease were worth £250,400. The mid-range amount of ground rent was £65 collected every twelve months. The lease expired in 2090. Taking into account 64 years left we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus expenses.