When it comes to residential leasehold premises in Morley, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Residents in Morley with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has fewer than eighty years left, under the relevant legislation the freeholder can calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Morley with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Morley can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Morley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the freeholder of her garden flat in Morley, Robyn initiated the lease extension process as the 80 year mark was swiftly nearing. The lease extension was concluded in June 2009. The landlord’s fees were restricted to slightly above 600 GBP.
Last month we were e-mailed by Dr Evan Hall , who completed a garden flat in Morley in August 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical properties in Morley with 100 year plus lease were in the region of £225,400. The mid-range ground rent payable was £45 collected monthly. The lease elapsed in 2089. Considering the 64 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus costs.
In 2009 we were contacted by Mr Harvey Jones who, having completed a first floor flat in Morley in November 2009. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable premises in Morley with a long lease were in the region of £270,000. The average amount of ground rent was £55 billed every twelve months. The lease terminated on 28 November 2100. Given that there were 75 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.