On the balance of probabilities where you own a flat in Murton you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Murton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Connor, came seriously near to the 80-year mark with the lease on his ground floor apartment in Murton. In buying his flat two decades ago, the length of the lease was of little significance. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Connor was able to extend his lease just under the wire in September. Connor and the landlord who owned the flat above subsequently agreed on sum of £6,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,025.
Mr W Rodríguez was assigned a lease of a garden flat in Murton in February 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar residencies in Murton with 100 year plus lease were worth £225,800. The average ground rent payable was £60 invoiced annually. The lease finished in 2085. Given that there were 60 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £25,700 and £29,600 plus expenses.
Mr and Mrs. D Sánchez was assigned a lease of a one bedroom flat in Murton in May 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Murton with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 collected annually. The lease concluded on 24 August 2105. Taking into account 80 years unexpired we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.