The market value of a leasehold property in Marple depends on how long the lease has left to run. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised ahead of the eighty year cut off point. Statute entitles Marple qualifying lessees to an additional term of 90 years in addition to the remaining term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Blake owned a 2 bedroom flat in Marple on the market with a lease of just over sixty years unexpired. Blake informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Last year we were e-mailed by Mr James Harris , who purchased a purpose-built apartment in Marple in April 1999. We are asked if we could approximate the price would be for a 90 year lease extension. Similar homes in Marple with an extended lease were valued around £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease expired in 2086. Taking into account 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including professional charges.
Dr Isaac Roux acquired a one bedroom flat in Marple in September 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Marple with an extended lease were valued around £255,000. The average amount of ground rent was £50 collected quarterly. The lease concluded in 2097. Given that there were 71 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.