Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Moreton In Marsh. Clearly, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Moreton In Marsh have the right to extend the lease for a further 90 years in accordance with legislation. You should give careful attention before putting off your Moreton In Marsh lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Moreton In Marsh with in excess of one hundred years left 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | 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. |
Engaging our service gives you better control over the value of your Moreton In Marsh leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Andrew, came very close to the eighty-year mark with the lease on his one bedroom flat in Moreton In Marsh. In buying his home 19 years ago, the unexpired term was of minimal concern. Thankfully, he realised he needed to take action soon on Extending the lease. Andrew extended the lease at the eleventh hour in January. Andrew and the freeholder eventually settled on an amount of £5,500 . If he failed to meet the deadline, the figure would have increased by a minimum £1,125.
In 2014 we were called by Mr and Mrs. V Robinson who, having bought a basement apartment in Moreton In Marsh in February 2012. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Moreton In Marsh with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 collected every twelve months. The lease lapsed on 22 January 2100. Having 75 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
In 2011 we were e-mailed by Mr and Mrs. M Walker who, having completed a ground floor apartment in Moreton In Marsh in February 2002. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical flats in Moreton In Marsh with an extended lease were valued about £168,800. The average ground rent payable was £60 billed every twelve months. The lease ran out on 2 July 2080. Given that there were 55 years outstanding we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.