Murton leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher premium will be due. Leasehold owners in Murton will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
The conveyancers that we work with procure 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.
Jacob was the the leasehold owner of a studio apartment in Murton being marketed with a lease of fraction over 61 years left. Jacob on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2011 we were approached by Mr and Mrs. M André who, having bought a recently refurbished apartment in Murton in July 2012. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparative homes in Murton with an extended lease were in the region of £285,000. The average ground rent payable was £45 invoiced quarterly. The lease concluded in 2098. Given that there were 72 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
Last month we were phoned by Mr J White , who acquired a one bedroom flat in Murton in April 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Murton with an extended lease were worth £233,200. The average amount of ground rent was £60 invoiced quarterly. The lease expired in 2087. Given that there were 61 years remaining we approximated the premium to the landlord to extend the lease to be between £22,800 and £26,400 not including legals.