It’s a harsh certainty that a Marylebone residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Marylebone property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Marylebone will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| National Westminster Bank | |
| The Mortgage Works |
The lawyers that we work with handle Marylebone 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 conveyancer we work with provide it.
Logan was the the leasehold proprietor of a conversion apartment in Marylebone on the market with a lease of a few days over sixty years outstanding. Logan informally contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
Dr Elizabeth Vincent owned a garden apartment in Marylebone in August 2010. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar properties in Marylebone with an extended lease were worth £295,000. The average ground rent payable was £45 invoiced annually. The lease elapsed on 14 September 2100. Taking into account 74 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.
An example of a Lease Extension decision 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 related to 2 flats. The unexpired lease term was 24.02 years.