Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Marford. Inevitably, the length of lease left shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Marford have the right to extend the lease for an additional ninety years in accordance with legislation. Do give careful deliberation before putting off your Marford lease extension. Holding off that expense now only increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Marford with in excess of 100 years unexpired 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Marford leasehold, as your property will be more valuable and marketable in respect of lease length should you wish 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.
14 months ago Logan, came very near to the eighty-year threshold with the lease on his two bedroom flat in Marford. In buying his home two decades ago, the lease term was of no significance. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Logan arranged for a lease extension just under the wire last August. Logan and the landlord who owned the flat above eventually agreed on sum of £5,000 . If he had missed the deadline, the sum would have gone up by at least £900.
In 2012 we were phoned by Ms Bethany Young who, having bought a one bedroom flat in Marford in September 2007. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparative flats in Marford with an extended lease were in the region of £275,000. The average ground rent payable was £55 invoiced yearly. The lease finished in 2102. Having 76 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
In 2011 we were phoned by Ms Alexandra Morris who, having moved into a first floor flat in Marford in October 2010. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Marford with a long lease were valued around £176,200. The average amount of ground rent was £65 billed quarterly. The lease finished in 2082. Considering the 56 years unexpired we estimated the premium to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of professional charges.