The value of Moreton In Marsh leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Moreton In Marsh leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Joshua, came very close to the 80-year mark with the lease on his studio apartment in Moreton In Marsh. In buying his property two decades ago, the length of the lease was of no importance. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Joshua extended the lease just under the wire in September. Joshua and the freeholder ultimately agreed on sum of £5,000 . If the lease had descended to less than eighty years, the price would have increased by at least £1,150.
Last Spring we were approach by Mr L Ramírez , who owned a basement flat in Moreton In Marsh in May 2000. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical residencies in Moreton In Marsh with 100 year plus lease were worth £250,000. The average ground rent payable was £50 billed quarterly. The lease lapsed in 2095. Given that there were 70 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Ms O Martínez completed a basement apartment in Moreton In Marsh in April 2008. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative homes in Moreton In Marsh with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease came to a finish in 2075. Taking into account 50 years remaining we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 plus costs.