Marshalls Park leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Marshalls Park will usually qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Marshalls Park leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Ben, came precariously near to the eighty-year mark with the lease on his basement flat in Marshalls Park. In buying his property two decades ago, the length of the lease was of no bearing. Thankfully, he realised he would imminently be paying an escalated premium for a lease extension. Ben extended the lease just ahead of time last August. Ben and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If the lease had slipped to less than eighty years, the figure would have gone up by a minimum £1,025.
Mr and Mrs. Y Anderson purchased a recently refurbished flat in Marshalls Park in March 2004. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparative premises in Marshalls Park with 100 year plus lease were valued about £257,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expired on 16 January 2090. Given that there were 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 plus expenses.
Last year we were called by Mr and Mrs. H Davies , who was assigned a lease of a studio flat in Marshalls Park in March 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Marshalls Park with an extended lease were worth £196,400. The mid-range amount of ground rent was £55 billed annually. The lease expired on 19 May 2079. Considering the 54 years remaining we approximated the premium to the landlord to extend the lease to be within £35,200 and £40,600 exclusive of legals.