Morganstown residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancing solicitors that we work with handle Morganstown 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.
Last Autumn Daniel, came dangerously close to the eighty-year mark with the lease on his one bedroom apartment in Morganstown. In buying his flat two decades ago, the length of the lease was of minimal interest. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Daniel arranged for a lease extension at the eleventh hour in September. Daniel and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had gone below 80 years, the price would have escalated by a minimum £1,100.
Last month we were called by Mr and Mrs. D Lefebvre , who took over the lease of a garden apartment in Morganstown in May 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Morganstown with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease finished on 22 January 2085. Considering the 59 years left we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of fees.
In 2010 we were contacted by Ms G Morris who, having completed a ground floor apartment in Morganstown in November 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Morganstown with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished in 2105. Taking into account 79 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.