Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Morriston. Clearly, the length of lease left reduces over time. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Morriston have the right to extend the lease for a further ninety years under legislation. You should give careful attention before putting off your Morriston lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Morriston can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Morriston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the freeholder of her leasehold apartment in Morriston, Kayleigh commenced the lease extension process as the eighty year mark was fast coming. The legal work completed in July 2012. The landlord’s fees were kept to an absolute minimum.
Mr A Torres purchased a one bedroom flat in Morriston in May 1999. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparable properties in Morriston with an extended lease were worth £280,000. The mid-range ground rent payable was £55 billed monthly. The lease ended on 23 June 2103. Considering the 78 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
Dr W Allen took over the lease of a one bedroom flat in Morriston in September 2008. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable properties in Morriston with an extended lease were valued about £186,000. The average amount of ground rent was £65 invoiced annually. The lease terminated in 2083. Having 58 years remaining we calculated the premium to the landlord to extend the lease to be between £24,700 and £28,600 not including costs.