Murton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Murton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Murton you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Murton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Nathan, came dangerously near to the 80-year threshold with the lease on his ground floor apartment in Murton. Having purchased his property two decades ago, the length of the lease was of little relevance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Nathan was able to extend his lease just ahead of time last March. Nathan and the freeholder via the management company ultimately settled on an amount of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £1,050.
Last Summer we were approach by Dr Connor Simon , who took over the lease of a first floor flat in Murton in June 1997. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Murton with an extended lease were in the region of £201,200. The average amount of ground rent was £55 billed annually. The lease ran out in 2081. Having 56 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.
In 2012 we were e-mailed by Ms Ellen Ricardo who, having acquired a purpose-built flat in Murton in May 2009. We are asked if we could estimate the price would be for a ninety year lease extension. Similar residencies in Murton with an extended lease were in the region of £300,000. The average ground rent payable was £50 invoiced quarterly. The lease ended on 20 July 2101. Considering the 76 years unexpired we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.