With a long leasehold premises in Morecambe, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years remaining. Anyone in Morecambe with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. When a lease has less than eighty years outstanding, under the current legislation the landlord can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Morecambe,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Morecambe valuers.
Trailing lengthy correspondence with the freeholder of her leasehold flat in Morecambe, Kirsty initiated the lease extension process as the 80 year threshold was fast nearing. The legal work was finalised in August 2007. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were phoned by Dr M James , who completed a ground floor apartment in Morecambe in April 2004. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative properties in Morecambe with an extended lease were worth £300,000. The average amount of ground rent was £50 collected annually. The lease terminated in 2102. Having 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Mr and Mrs. E Leroy took over the lease of a studio flat in Morecambe in May 1997. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Identical homes in Morecambe with 100 year plus lease were valued about £257,800. The average ground rent payable was £65 invoiced every twelve months. The lease finished on 26 February 2091. Having 65 years left we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus expenses.