Markfield leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Markfield will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain cases you may not be entitled. There are also strict deadlines and steps to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with undertake Markfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing lengthy discussions with the freeholder of her two bedroom apartment in Markfield, Isabella commenced the lease extension process just as the lease was nearing the critical 80-year deadline. The transaction completed in March 2013. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were phoned by Dr Georgina David who, having purchased a basement apartment in Markfield in June 2007. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Markfield with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £55 billed every twelve months. The lease finished in 2102. Having 76 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Last Autumn we were approach by Mr and Mrs. O White , who acquired a purpose-built flat in Markfield in September 2007. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical flats in Markfield with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected per annum. The lease ran out on 3 October 2082. Having 56 years left we approximated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus professional charges.