The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Marford may extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your Marford lease extension. Putting off the costs today simply escalates the amount you will ultimately have to pay to extend the lease.
Leasehold premises in Marford with over 100 years left on the lease are often 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 freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Marford leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Zachary was the the leasehold proprietor of a studio flat in Marford on the market with a lease of a few days over sixty years unexpired. Zachary informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Zachary to invoke his statutory right. Zachary procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Mrs Abigail Mason completed a first floor apartment in Marford in June 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical homes in Marford with an extended lease were valued around £200,800. The average ground rent payable was £65 collected annually. The lease finished on 11 September 2085. Considering the 60 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of expenses.
Last month we were approach by Mr A Mason , who completed a basement apartment in Marford in April 2010. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparative premises in Marford with a long lease were worth £255,000. The average amount of ground rent was £50 billed quarterly. The lease finished in 2096. Considering the 71 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.