Unfortunately that a Murton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Murton property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Murton will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service will provide you better control over the value of your Murton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the landlord of her ground floor flat in Murton, Isabelle initiated the lease extension process as the 80 year threshold was quickly coming. The lease extension was concluded in June 2015. The freeholder’s costs were negotiated to about 550 GBP.
Dr R Rose acquired a studio flat in Murton in March 1998. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Identical properties in Murton with a long lease were worth £218,400. The average amount of ground rent was £60 invoiced yearly. The lease came to a finish on 16 April 2085. Taking into account 59 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 not including expenses.
In 2010 we were called by Dr Alfie Thomas who, having moved into a one bedroom apartment in Murton in July 2011. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative premises in Murton with an extended lease were worth £205,000. The average amount of ground rent was £50 billed yearly. The lease came to a finish in 2105. Given that there were 79 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.