The value of Morecambe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is below than 80 years
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Morecambe,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Morecambe valuers.
In 2014 Luca, came seriously close to the eighty-year mark with the lease on his garden flat in Morecambe. In buying his property 18 years ago, the unexpired term was of minimal interest. by good luck, he recognised he needed to take steps soon on a lease extension. Luca arranged for a lease extension at the eleventh hour in January. Luca and the landlord who owned the flat above in the end agreed on sum of £6,000 . If the lease had fallen to less than eighty years, the sum would have escalated by at least £1,075.
Mr and Mrs. E Garcia moved into a purpose-built apartment in Morecambe in April 2005. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical residencies in Morecambe with 100 year plus lease were valued around £213,600. The average amount of ground rent was £60 collected annually. The lease end date was on 2 November 2083. Given that there were 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of legals.
In 2009 we were called by Dr Evan Morris who, having purchased a purpose-built apartment in Morecambe in November 1995. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar flats in Morecambe with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease came to a finish on 13 June 2103. Considering the 77 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.