Marford leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Marford will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Marford 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.
Following protracted negotiations with the landlord of her first floor flat in Marford, Jasmine commenced the lease extension process just as her lease was nearing the all-important eighty-year mark. The lease extension completed in November 2010. The landlord’s costs were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. F Murphy who, having was assigned a lease of a studio apartment in Marford in January 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable premises in Marford with 100 year plus lease were worth £265,000. The average amount of ground rent was £55 invoiced quarterly. The lease expired in 2100. Considering the 74 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2012 we were called by Mr A Clarke who, having owned a studio flat in Marford in January 2000. We are asked if we could estimate the price could be for a ninety year lease extension. Identical premises in Marford with an extended lease were valued about £166,400. The average ground rent payable was £60 collected quarterly. The lease elapsed in 2080. Given that there were 54 years left we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus legals.