Marple residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with handle Marple lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October Zachary, started to get close to the eighty-year mark with the lease on his first floor apartment in Marple. Having purchased his flat two decades ago, the unexpired term was of no significance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Zachary extended the lease just under the wire in May. Zachary and the freeholder eventually agreed on a premium of £5,500 . If the lease had dropped lower than eighty years, the premium would have increased by a minimum £1,050.
Dr B Garcia moved into a basement flat in Marple in August 2010. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Marple with a long lease were valued around £218,000. The average ground rent payable was £45 billed per annum. The lease elapsed on 14 March 2088. Having 63 years remaining we approximated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of costs.
Mr and Mrs. L Flores was assigned a lease of a first floor flat in Marple in June 2002. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable flats in Marple with 100 year plus lease were valued about £270,000. The average amount of ground rent was £55 collected quarterly. The lease concluded on 3 September 2099. Having 74 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.