The re-sale value of a leasehold property in Marple is impacted by how long the lease has left to run. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed in advance of the 80 year mark. Leasehold Reform legislation entitles Marple qualifying lessees to an additional term of 90 years in addition to the existing term, at a nominal rent (no ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Marple with in excess of one hundred years remaining 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander |
Lease extensions in Marple can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Marple lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aarav was the the leasehold proprietor of a 2 bedroom flat in Marple being sold with a lease of just over 72 years unexpired. Aarav on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Aarav to invoke his statutory right. Aarav procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Spring we were approach by Ms Katie Williams , who purchased a basement flat in Marple in July 1999. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable flats in Marple with 100 year plus lease were valued about £242,600. The average ground rent payable was £45 invoiced annually. The lease expired on 21 March 2093. Having 67 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of professional charges.
Last year we were contacted by Mr and Mrs. S Sharif , who completed a one bedroom flat in Marple in March 2005. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative homes in Marple with an extended lease were valued about £280,000. The average amount of ground rent was £55 invoiced monthly. The lease termination date was in 2104. Given that there were 78 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.