Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Markfield. Clearly, the period of lease left shortens over time. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying leaseholders in Markfield have the right to extend the lease for a further ninety years in accordance with statute. Do give careful attention before delaying your Markfield lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold residencies in Markfield with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Markfield can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
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 Markfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson owned a 2 bedroom flat in Markfield being marketed with a lease of fraction over 59 years unexpired. Jackson informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2013 we were contacted by Ms P Simon who, having took over the lease of a basement apartment in Markfield in November 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Markfield with an extended lease were worth £210,600. The average ground rent payable was £45 collected monthly. The lease elapsed on 7 March 2087. Having 62 years remaining we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including fees.
Last Spring we were called by Mrs Laura Anderson , who acquired a one bedroom flat in Markfield in November 1999. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Identical properties in Markfield with a long lease were valued about £265,000. The mid-range amount of ground rent was £50 collected monthly. The lease came to a finish on 7 January 2098. Given that there were 73 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.