Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Marchington. Inevitably, the term of lease left reduces over time. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Marchington have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give careful attention before delaying your Marchington lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
Leasehold premises in Marchington with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Marchington 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.
Liam was the the leasehold proprietor of a studio apartment in Marchington being marketed with a lease of fraction over 72 years remaining. Liam on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Liam to exercise his statutory right. Liam procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
Dr B González completed a studio flat in Marchington in February 2012. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable premises in Marchington with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 collected quarterly. The lease ended on 5 January 2101. Given that there were 76 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Dr R Rodríguez moved into a one bedroom flat in Marchington in September 2007. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative residencies in Marchington with an extended lease were valued about £257,800. The average amount of ground rent was £65 billed yearly. The lease terminated on 25 November 2090. Taking into account 65 years remaining we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.