The market value of a leasehold property in Morley depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be concluded well before the eighty year mark. Statute entitles Morley qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a nominal rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Morley with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The lawyers that we work with undertake Morley 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 conveyancing solicitor we work with provide it.
In the wake of eight months of lengthy correspondence with the landlord of her one bedroom flat in Morley, Elizabeth started the lease extension process just as her lease was nearing the crucial eighty-year deadline. The lease extension was finalised in July 2015. The freeholder’s costs were negotiated to approximately five hundred GBP.
Last Spring we were called by Mr and Mrs. R Ali , who took over the lease of a one bedroom apartment in Morley in January 2007. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparable homes in Morley with an extended lease were worth £208,200. The average ground rent payable was £65 billed annually. The lease finished in 2086. Taking into account 61 years unexpired we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including legals.
In 2011 we were e-mailed by Dr A Moore who, having took over the lease of a ground floor apartment in Morley in February 2011. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative flats in Morley with 100 year plus lease were worth £260,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish on 1 January 2097. Given that there were 72 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.