The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Morley have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Morley lease extension. Shelving that expense today simply increases the amount you will ultimately have to pay for a lease extension.
Leasehold properties in Morley with over one hundred years unexpired 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 buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Morley can be a difficult process. We recommend you secure guidance 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.
Last October Sam, started to get close to the 80-year mark with the lease on his studio flat in Morley. Having bought his home 18 years previously, the unexpired term was of no significance. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Sam was able to extend his lease at the eleventh hour in September. Sam and the freeholder eventually agreed on a premium of £5,500 . If the lease had dropped to less than 80 years, the sum would have gone up by at least £1,050.
Mr Y David bought a ground floor apartment in Morley in June 2009. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Identical premises in Morley with a long lease were in the region of £280,000. The average amount of ground rent was £55 billed quarterly. The lease end date was on 4 March 2104. Given that there were 78 years left we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
Ms Naomi Thompson acquired a one bedroom apartment in Morley in October 2000. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Identical premises in Morley with 100 year plus lease were worth £191,000. The mid-range amount of ground rent was £65 billed annually. The lease expired on 17 February 2084. Having 58 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus fees.