When it comes to domestic leasehold property in Markfield, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years left. Residents in Markfield with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years remaining, under the current statute the freeholder can calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Markfield with more than one hundred years left on the lease are often referred to as ‘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 buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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.
Half a year ago Felix, started to get near to the 80-year mark with the lease on his ground floor apartment in Markfield. In buying his home 19 years ago, the length of the lease was of no concern. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Felix arranged for a lease extension just in the nick of time in March. Felix and the freeholder via the managing agents in the end settled on the final figure of £6,000 . If the lease had dipped lower than 80 years, the premium would have escalated by at least £1,100.
Last January we were e-mailed by Mr and Mrs. W Wilson , who completed a purpose-built flat in Markfield in July 2000. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Markfield with a long lease were worth £220,400. The mid-range ground rent payable was £45 collected yearly. The lease ended on 16 March 2090. Having 64 years left we approximated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 plus costs.
Mr and Mrs. G Gunderson took over the lease of a garden apartment in Markfield in July 2010. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Identical properties in Markfield with an extended lease were worth £270,000. The average amount of ground rent was £55 billed per annum. The lease expired in 2101. Having 75 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.