Market Rasen leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Market Rasen will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Market Rasen leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Cameron owned a studio apartment in Market Rasen being sold with a lease of just over 72 years unexpired. Cameron informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Cameron to exercise his statutory right. Cameron procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
In 2009 we were phoned by Mr Theo Petit who, having acquired a basement apartment in Market Rasen in May 1998. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical properties in Market Rasen with 100 year plus lease were valued around £200,800. The average amount of ground rent was £65 invoiced quarterly. The lease expired in 2086. Considering the 60 years outstanding we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus legals.
Dr L Moreau completed a basement apartment in Market Rasen in February 2002. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Market Rasen with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded in 2097. Given that there were 71 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.