Stop! Your Lease Extension in Murton Could Be FREE

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Many leaseholders in Murton are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Murton has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to commence your Murton lease extension

Why you should start your Murton lease extension today:

A Murton lease depreciates with the years remaining on the lease.

Murton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Murton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Murton you really ought to check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Murton flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay

Murton property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders will not lend with a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on any leasehold residence before they will consider providing a mortgage on it. Regardless of whether you require a mortgage, you should be mindful that it is reasonable to assume that someone intending to purchase your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of the property will likely suffer. In the last decade most mortgage lenders have increased the required minimum lease length that they are willing to lend on

Lender Requirement
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.
Leeds Building Society 85 years remaining from the start of the mortgage.
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.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.

Get in touch with one of our Murton lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Murton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Murton valuers.

Murton Lease Extension Case Studies:

Ashleigh, Murton, County Durham,

After protracted negotiations with the landlord of her basement flat in Murton, Ashleigh commenced the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension completed in June 2015. The freeholder’s charges were kept to an absolute minimum.

Murton case:

In 2011 we were called by Mr Ollie Johnson who, having moved into a studio flat in Murton in September 2010. The question was if we could approximate the premium would be to prolong the lease by 90 years. Comparable flats in Murton with 100 year plus lease were in the region of £166,800. The mid-range amount of ground rent was £50 invoiced quarterly. The lease termination date was in 2076. Given that there were 50 years unexpired we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of expenses.

Murton case:

Mr and Mrs. N Morgan bought a first floor flat in Murton in October 2011. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Murton with 100 year plus lease were valued about £280,000. The average ground rent payable was £45 invoiced quarterly. The lease concluded in 2096. Considering the 70 years as a residual term we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.