Chances are that if you own a flat in Murton you actually own a long leasehold interest over your property
Leasehold residencies in Murton with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold 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 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Murton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Murton valuers.
In 2014 Andrew, came precariously near to the 80-year mark with the lease on his garden apartment in Murton. In buying his flat two decades ago, the lease term was of no significance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Andrew extended the lease just ahead of time last September. Andrew and the landlord who owned the flat above eventually agreed on sum of £6,000 . If he failed to meet the deadline, the premium would have escalated by at least £900.
In 2012 we were e-mailed by Dr Catherine Richardson who, having acquired a garden apartment in Murton in July 2000. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative flats in Murton with a long lease were worth £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease finished in 2081. Considering the 55 years remaining we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including costs.
Dr B Parker owned a one bedroom flat in Murton in November 2005. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical residencies in Murton with 100 year plus lease were valued about £295,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded in 2101. Having 75 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.