Murton leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Murton will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Murton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the freeholder of her studio flat in Murton, Abigail started the lease extension process as the eighty year threshold was swiftly coming. The legal work was finalised in August 2009. The freeholder’s costs were restricted to below 550 pounds.
In 2014 we were called by Mr and Mrs. H Lefebvre who, having took over the lease of a one bedroom flat in Murton in October 2012. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative flats in Murton with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 billed quarterly. The lease expired on 23 January 2077. Having 52 years outstanding we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.
In 2013 we were called by Mr and Mrs. V Moreau who, having bought a one bedroom flat in Murton in January 2004. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Murton with 100 year plus lease were worth £285,000. The average ground rent payable was £45 invoiced annually. The lease elapsed in 2097. Given that there were 72 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.