Morecambe leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Morecambe will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Morecambe,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Morecambe valuers.
Reuben owned a 2 bedroom flat in Morecambe being marketed with a lease of a little over 61 years left. Reuben informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Reuben to exercise his statutory right. Reuben procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Mrs Megan Rose took over the lease of a garden apartment in Morecambe in January 2000. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Morecambe with a long lease were worth £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease end date was on 18 May 2098. Having 72 years remaining we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus costs.
Dr Kirsty Mercier bought a garden apartment in Morecambe in September 2010. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Morecambe with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated on 19 January 2087. Having 61 years left we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus professional charges.