Marylebone residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service will provide you increased control over the value of your Marylebone leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harrison owned a 2 bedroom apartment in Marylebone being marketed with a lease of just over 59 years outstanding. Harrison informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Harrison to invoke his statutory right. Harrison procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mrs M Walker moved into a basement flat in Marylebone in July 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative properties in Marylebone with 100 year plus lease were worth £198,800. The average ground rent payable was £55 collected quarterly. The lease lapsed on 3 November 2080. Considering the 55 years left we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Marylebone residence is Flats 37 & 39 88/90 Portland Place in December 2010. The Tribunal determined that the premium payable for the lease extensions in respect of these two flats is as follows:- For Flat 37, the sum of £385,230.00 For Flat 39, the sum of £436,780.00 This case affected 2 flats. The unexpired lease term was 24.02 years.