Unfortunately that a Morriston residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Morriston property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term slips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Morriston will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Morriston leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad owned a 2 bedroom apartment in Morriston on the market with a lease of a few days over 59 years left. Muhammad on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Spring we were contacted by Dr Niamh Evans , who bought a purpose-built apartment in Morriston in June 2000. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical residencies in Morriston with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 collected yearly. The lease expired in 2076. Given that there were 50 years left we approximated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 plus legals.
In 2009 we were e-mailed by Mr and Mrs. C Harris who, having acquired a garden flat in Morriston in January 2007. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical premises in Morriston with an extended lease were valued about £203,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease termination date was in 2087. Considering the 61 years left we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus costs.