As the the remaining lease term of a Morriston domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, over one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Morriston will meet the qualifying criteria; that being said a conveyancer will be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Morriston with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord 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.
Aiden was the the leasehold owner of a 2 bedroom flat in Morriston being sold with a lease of fraction over sixty years unexpired. Aiden informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last month we were called by Mr H Turner , who purchased a first floor flat in Morriston in August 2009. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Morriston with an extended lease were in the region of £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease concluded on 6 March 2095. Considering the 69 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2012 we were approached by Mrs J Martinez who, having purchased a one bedroom flat in Morriston in November 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Morriston with an extended lease were worth £285,000. The average amount of ground rent was £55 invoiced monthly. The lease elapsed in 2106. Having 80 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.