When it comes to residential leasehold premises in Morley, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Anyone in Morley with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has under eighty years remaining, under the current legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 get professional help from a conveyancer and surveyor 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 procuring Morley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the landlord of her first floor apartment in Morley, Kayleigh initiated the lease extension process as the 80 year mark was swiftly coming. The transaction was finalised in June 2011. The freeholder’s costs were negotiated to slightly above 700 GBP.
Last August we were contacted by Mr John Rogers , who acquired a one bedroom apartment in Morley in April 1997. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable flats in Morley with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £60 billed every twelve months. The lease concluded in 2105. Having 80 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
Mrs B Robinson was assigned a lease of a studio apartment in Morley in August 1995. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Morley with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected monthly. The lease ran out on 20 June 2085. Taking into account 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including costs.