Market Deeping leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Market Deeping tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Market Deeping you would be well advised to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Market Deeping with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Market Deeping can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Market Deeping lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago John, came perilously close to the eighty-year mark with the lease on his leasehold flat in Market Deeping. Having bought his home 19 years ago, the length of the lease was of minimal importance. by good luck, he recognised he needed to take steps soon on Extending the lease. John was able to extend his lease just ahead of time in March. John and the freeholder via the management company in the end agreed on sum of £6,000 . If he had missed the deadline, the figure would have increased by at least £1,125.
Ms M Green moved into a basement flat in Market Deeping in November 2007. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Identical properties in Market Deeping with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 billed annually. The lease terminated on 3 November 2077. Considering the 51 years remaining we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.
Mr and Mrs. O Gunderson purchased a studio flat in Market Deeping in June 2002. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparative homes in Market Deeping with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease concluded on 5 January 2097. Given that there were 71 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.