For those whose Marford home is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Marford with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you better control over the value of your Marford leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ali owned a studio apartment in Marford being sold with a lease of fraction over 72 years outstanding. Ali on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mrs N Garcia acquired a studio flat in Marford in May 2004. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable flats in Marford with 100 year plus lease were worth £168,800. The mid-range ground rent payable was £60 invoiced annually. The lease finished in 2080. Considering the 55 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.
Ms Lily Gray was assigned a lease of a garden flat in Marford in August 1998. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Marford with an extended lease were valued around £235,200. The average ground rent payable was £45 collected yearly. The lease ended on 11 October 2091. Having 66 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.