Marshalls Park leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Marshalls Park will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold properties in Marshalls Park with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Marshalls Park,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marshalls Park valuers.
Milo owned a 2 bedroom apartment in Marshalls Park being marketed with a lease of fraction over 59 years left. Milo on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Milo to exercise his statutory right. Milo obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2013 we were phoned by Mr E Sharif who, having took over the lease of a one bedroom flat in Marshalls Park in May 2009. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar premises in Marshalls Park with a long lease were worth £213,600. The average ground rent payable was £60 collected yearly. The lease concluded on 22 November 2082. Given that there were 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including professional charges.
Last Christmas we were e-mailed by Mr and Mrs. P Rogers , who took over the lease of a studio apartment in Marshalls Park in June 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Marshalls Park with a long lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ran out on 14 April 2102. Given that there were 77 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.