When it comes to domestic leasehold premises in Marshalls Park, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are fewer than 80 years remaining. Leasehold owners in Marshalls Park with a lease approaching 81 years unexpired should seriously think of extending it without delay. When a lease has below eighty years outstanding, under the current legislation the freeholder is entitled to calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Marshalls Park with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Marshalls Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Austin owned a conversion flat in Marshalls Park being marketed with a lease of fraction over sixty years unexpired. Austin on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Austin to exercise his statutory right. Austin procured expert advice and secured satisfactory deal informally and readily saleable.
In 2009 we were phoned by Dr H Ricardo who, having purchased a basement apartment in Marshalls Park in August 2001. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative homes in Marshalls Park with an extended lease were worth £216,000. The average amount of ground rent was £60 invoiced quarterly. The lease concluded in 2084. Taking into account 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.
Mr C King was assigned a lease of a purpose-built flat in Marshalls Park in September 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Marshalls Park with a long lease were valued around £205,000. The average ground rent payable was £50 invoiced annually. The lease concluded on 27 April 2105. Given that there were 79 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 not including costs.