The re-sale value of a leasehold property in Marple is impacted by how long the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that all matters can be finalised well before the 80 year mark. Statute enables Marple qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Marple,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Marple valuers.
Half a year ago Arthur, started to get close to the 80-year mark with the lease on his leasehold apartment in Marple. In buying his property two decades ago, the lease term was of little importance. Thankfully, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Arthur extended the lease just under the wire in August. Arthur and the landlord eventually settled on a premium of £5,000 . If the lease had gone to less than eighty years, the premium would have increased by a minimum £1,100.
Last November we were phoned by Ms Ashleigh Thompson , who completed a basement flat in Marple in April 2008. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar flats in Marple with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £55 invoiced every twelve months. The lease ran out on 13 July 2100. Given that there were 74 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Dr Luca Anderson owned a one bedroom apartment in Marple in July 2009. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Marple with a long lease were in the region of £166,400. The average amount of ground rent was £60 billed every twelve months. The lease lapsed on 14 October 2080. Taking into account 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of costs.