When it comes to domestic leasehold premises in Morganstown, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years left. Leasehold owners in Morganstown with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has below 80 years left, under the current statute the freeholder can calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Morganstown with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Morganstown,the lease extension experts 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 Morganstown valuers.
After lengthy correspondence with the landlord of her basement flat in Morganstown, Paige started the lease extension process as the 80 year threshold was swiftly coming. The transaction was finalised in September 2007. The freeholder’s charges were negotiated to approximately 600 GBP.
Mr and Mrs. R Martínez was assigned a lease of a newly refurbished apartment in Morganstown in April 2000. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Morganstown with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated in 2101. Having 76 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
In 2009 we were e-mailed by Mr J Cooper who, having was assigned a lease of a first floor apartment in Morganstown in July 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Morganstown with a long lease were worth £257,800. The mid-range ground rent payable was £65 billed quarterly. The lease elapsed in 2090. Taking into account 65 years left we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including legals.