There is no doubt about it a leasehold property in Morganstown is a wasting asset as a result of the diminishing lease term. If the lease has, more than 99 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Most flat owners in Morganstown will meet the qualifying criteria; that being said a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Morganstown leasehold, as your property will be more valuable and saleable in relation to the lease length should you want 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.
Nathaniel owned a studio apartment in Morganstown on the market with a lease of a few days over 72 years remaining. Nathaniel informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert legal guidance and secured satisfactory deal informally and sell the property.
Mr and Mrs. M Cooper moved into a garden flat in Morganstown in February 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Morganstown with 100 year plus lease were valued about £295,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish on 28 April 2100. Given that there were 75 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
Mr and Mrs. D Bennett was assigned a lease of a one bedroom apartment in Morganstown in March 2002. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Morganstown with 100 year plus lease were worth £250,400. The average ground rent payable was £65 invoiced per annum. The lease ran out on 24 June 2089. Considering the 64 years unexpired we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 plus expenses.