Marshalls Park leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Marshalls Park tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Marshalls Park you should see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Marshalls Park leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Marshalls Park can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 a wealth of experience dealing with Marshalls Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted negotiations with the landlord of her one bedroom apartment in Marshalls Park, Sarah started the lease extension process as the 80 year deadline was quickly coming. The transaction was concluded in February 2007. The landlord’s costs were kept to an absolute minimum.
Last Winter we were called by Mr and Mrs. T Turner , who bought a one bedroom apartment in Marshalls Park in June 2006. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Marshalls Park with an extended lease were valued around £233,200. The mid-range ground rent payable was £60 collected per annum. The lease finished on 17 July 2086. Considering the 61 years outstanding we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.
Mr H Clark moved into a one bedroom apartment in Marshalls Park in August 1997. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable properties in Marshalls Park with 100 year plus lease were worth £171,800. The average ground rent payable was £55 invoiced yearly. The lease ran out in 2075. Considering the 50 years left we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of expenses.