Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Murton. Clearly, the length of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Murton have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Please give due deliberation before putting off your Murton lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold premises in Murton with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Murton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Murton valuers.
Off the back of protracted discussions with the landlord of her two bedroom apartment in Murton, Laura initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work completed in October 2014. The freeholder’s charges were negotiated to under 650 pounds.
Last year we were phoned by Dr I Roux , who owned a first floor apartment in Murton in May 2011. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical homes in Murton with a long lease were worth £280,000. The average amount of ground rent was £45 collected per annum. The lease ended on 15 April 2096. Considering the 71 years left we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Dr M Morel acquired a one bedroom apartment in Murton in July 2006. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative homes in Murton with a long lease were worth £225,800. The mid-range ground rent payable was £60 billed quarterly. The lease concluded in 2085. Given that there were 60 years left we calculated the compensation to the landlord to extend the lease to be between £25,700 and £29,600 plus costs.