As the length of the unexpired term of a Morriston domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Morriston will qualify for this right; however a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 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 premises will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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 Morriston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Morriston valuers.
During the course of the last few months Noah, came perilously near to the 80-year threshold with the lease on his studio apartment in Morriston. Having purchased his flat twenty years ago, the unexpired term was of minimal concern. Luckily, he realised he would imminently be paying an escalated premium for a lease extension. Noah was able to extend his lease at the eleventh hour last May. Noah and the freeholder via the managing agents eventually agreed on a premium of £5,500 . If he had missed the deadline, the price would have escalated by a minimum £1,075.
Mr and Mrs. G Mason owned a one bedroom flat in Morriston in September 2006. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Identical premises in Morriston with a long lease were worth £210,600. The mid-range amount of ground rent was £45 collected annually. The lease elapsed in 2087. Having 62 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
Last Autumn we were e-mailed by Ms K Taylor , who took over the lease of a ground floor apartment in Morriston in August 2005. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Morriston with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease expired on 1 March 2098. Considering the 73 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.