The closer a residential lease in Marshalls Park gets to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Marshalls Park will meet the qualifying criteria; however a conveyancer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service gives you increased control over the value of your Marshalls Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Ben, started to get close to the 80-year threshold with the lease on his two bedroom flat in Marshalls Park. In buying his flat 19 years previously, the length of the lease was of no interest. by good luck, he realised he needed to take action soon on a lease extension. Ben was able to extend his lease just ahead of time last January. Ben and the freeholder via the management company in the end settled on the final figure of £5,000 . If he not met the deadline, the figure would have increased by at least £1,000.
Mr and Mrs. F Carter purchased a garden flat in Marshalls Park in June 1997. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Marshalls Park with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish on 2 March 2077. Having 52 years outstanding we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of costs.
In 2013 we were phoned by Mrs Hollie Laurent who, having completed a ground floor flat in Marshalls Park in November 1998. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Identical flats in Marshalls Park with an extended lease were worth £290,000. The average ground rent payable was £45 billed quarterly. The lease expiry date was in 2097. Having 72 years unexpired we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including costs.