The only way is down when it comes to Morpeth lease terms. Morpeth properties that have a lease term shorter than eighty years will reduce in value at a rapid rate, and the cost of extending your lease will increase.
Leasehold properties in Morpeth with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Morpeth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Morpeth valuers.
Following protracted correspondence with the freeholder of her basement flat in Morpeth, Phoebe commenced the lease extension process as the 80 year threshold was swiftly approaching. The transaction completed in January 2009. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were e-mailed by Dr Dylan Garcia , who was assigned a lease of a one bedroom flat in Morpeth in September 2007. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable homes in Morpeth with a long lease were valued around £184,000. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish in 2078. Given that there were 53 years unexpired we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.
In 2011 we were contacted by Dr Seth Stewart who, having bought a studio apartment in Morpeth in November 1997. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Similar flats in Morpeth with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 invoiced annually. The lease came to a finish on 8 January 2098. Considering the 73 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.