On the balance of probabilities where you own a flat in Moreton In Marsh you actually own a long leasehold interest over your property
Leasehold premises in Moreton In Marsh with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with handle Moreton In Marsh 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.
Jude was the the leasehold owner of a studio flat in Moreton In Marsh being marketed with a lease of fraction over fifty eight years unexpired. Jude informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Jude to exercise his statutory right. Jude obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Autumn we were phoned by Dr Sam Garcia , who was assigned a lease of a ground floor apartment in Moreton In Marsh in March 2011. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Identical properties in Moreton In Marsh with a long lease were valued about £225,400. The mid-range ground rent payable was £45 collected per annum. The lease ended in 2090. Considering the 64 years left we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of professional charges.
Last Spring we were e-mailed by Mrs S François , who moved into a one bedroom flat in Moreton In Marsh in March 1996. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Moreton In Marsh with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 billed per annum. The lease concluded in 2101. Taking into account 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.