The only way is down when it comes to Morecambe lease terms. Morecambe flats that have a remaining term fewer than eighty years will drop in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold properties in Morecambe with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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.
Jasper was the the leasehold owner of a conversion apartment in Morecambe on the market with a lease of fraction over fifty eight years unexpired. Jasper on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr Henry Ricardo bought a recently refurbished flat in Morecambe in February 2012. The question was if we could estimate the price could be for a ninety year lease extension. Comparative properties in Morecambe with an extended lease were worth £181,600. The average ground rent payable was £55 invoiced annually. The lease lapsed in 2077. Given that there were 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including professional charges.
Dr Toby Roux bought a first floor apartment in Morecambe in April 2002. The question was if we could approximate the premium would be to extend the lease by 90 years. Identical flats in Morecambe with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 billed monthly. The lease end date was on 6 October 2097. Taking into account 72 years outstanding we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus legals.