As the the remaining lease term of a Markfield domestic lease diminished so does its value and therefore the value of your property. Where the lease has, more than 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Many flat owners in Markfield will meet the qualifying criteria; nevertheless a lawyer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Markfield with more than one hundred years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Retaining our service gives you increased control over the value of your Markfield leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the freeholder of her garden flat in Markfield, Imogen initiated the lease extension process as the eighty year mark was rapidly nearing. The transaction was concluded in October 2010. The landlord’s fees were negotiated to less than 700 pounds.
In 2013 we were phoned by Mr and Mrs. P Hernández who, having moved into a studio apartment in Markfield in March 1999. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Markfield with a long lease were worth £265,000. The average amount of ground rent was £50 invoiced annually. The lease expired on 21 May 2099. Having 74 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Mr and Mrs. R Stewart acquired a first floor apartment in Markfield in February 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Markfield with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 billed monthly. The lease terminated in 2079. Given that there were 54 years unexpired we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of fees.