Murton leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher amount will be payable. Flat owners in Murton will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Murton with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Murton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last Christmas William, started to get near to the 80-year mark with the lease on his ground floor apartment in Murton. Having bought his property two decades ago, the length of the lease was of no importance. Thankfully, he recognised he would imminently be paying way over the odds for a lease extension. William arranged for a lease extension just ahead of time in January. William and the freeholder subsequently settled on the final figure of £5,000 . If the lease had fallen to less than eighty years, the price would have escalated by a minimum £925.
In 2010 we were e-mailed by Mr L André who, having was assigned a lease of a ground floor apartment in Murton in January 2005. The question was if we could approximate the premium could be to prolong the lease by 90 years. Similar properties in Murton with 100 year plus lease were worth £208,600. The average ground rent payable was £60 billed quarterly. The lease finished on 10 April 2083. Taking into account 57 years left we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of fees.
In 2014 we were called by Dr I Parker who, having owned a studio apartment in Murton in November 1997. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Identical flats in Murton with a long lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2103. Given that there were 77 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.