For those whose Murton property is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is generally accepted 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 property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Murton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience procuring Murton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the landlord of her garden flat in Murton, Abigail initiated the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work was concluded in August 2006. The landlord’s costs were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. M Lee who, having was assigned a lease of a one bedroom apartment in Murton in May 2006. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative homes in Murton with a long lease were worth £200,000. The mid-range amount of ground rent was £50 collected yearly. The lease ended on 16 July 2103. Having 77 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
Last year we were approach by Mr and Mrs. U Collins , who owned a one bedroom apartment in Murton in July 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Murton with an extended lease were worth £260,200. The mid-range ground rent payable was £65 billed per annum. The lease elapsed on 11 November 2092. Having 66 years outstanding we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus expenses.