Marchington leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Marchington will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Marchington with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful correspondence with the freeholder of her purpose-built apartment in Marchington, Daisy commenced the lease extension process just as her lease was nearing the crucial eighty-year threshold. The transaction was concluded in August 2010. The freeholder’s charges were restricted to below 450 GBP.
In 2009 we were e-mailed by Mr F James who, having was assigned a lease of a ground floor apartment in Marchington in January 1999. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Marchington with an extended lease were in the region of £171,800. The mid-range amount of ground rent was £55 billed monthly. The lease ran out in 2076. Having 50 years outstanding we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.
Dr Ellie Young bought a one bedroom flat in Marchington in January 2001. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparative flats in Marchington with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish in 2096. Given that there were 70 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.