Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Marshalls Park. Clearly, the term of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Marshalls Park have the legal entitlement to extend the lease for a further 90 years under legislation. Please give due consideration before delaying your Marshalls Park lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Marshalls Park with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a landlord in Marshalls Park,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marshalls Park valuers.
Two years ago Sebastian, came dangerously near to the eighty-year threshold with the lease on his ground floor flat in Marshalls Park. Having purchased his home two decades ago, the lease term was of minimal importance. Fortunately, he realised he needed to take steps soon on a lease extension. Sebastian was able to extend his lease at the eleventh hour in July. Sebastian and the freeholder eventually agreed on a premium of £5,500 . If he not met the deadline, the figure would have become more costly by at least £1,100.
Mrs Tia Brown owned a first floor flat in Marshalls Park in May 2012. We are asked if we could estimate the price would be for a 90 year lease extension. Similar residencies in Marshalls Park with an extended lease were valued about £196,400. The mid-range amount of ground rent was £55 collected monthly. The lease finished on 10 June 2080. Given that there were 54 years left we approximated the compensation to the landlord to extend the lease to be between £35,200 and £40,600 plus expenses.
Last Autumn we were e-mailed by Mrs Samantha Lefebvre , who moved into a basement flat in Marshalls Park in February 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative premises in Marshalls Park with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ended on 28 November 2101. Taking into account 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.