Unfortunately that a Marford residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Marford property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Marford will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society |
Regardless of whether you are a tenant or a freeholder in Marford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marford valuers.
Last year George, came seriously near to the eighty-year threshold with the lease on his studio apartment in Marford. In buying his home two decades ago, the unexpired term was of minimal importance. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. George extended the lease just under the wire last August. George and the landlord in the end settled on a premium of £5,000 . If the lease had gone below 80 years, the figure would have increased by at least £1,100.
In 2010 we were contacted by Dr J Stewart who, having owned a garden flat in Marford in July 2005. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparative flats in Marford with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease expired in 2095. Considering the 69 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Mrs Hollie Lewis took over the lease of a recently refurbished apartment in Marford in May 2006. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Comparative residencies in Marford with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 billed quarterly. The lease ended in 2106. Given that there were 80 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.