There is no doubt about it a leasehold property in Marks Gate is a wasting asset as a result of the diminishing lease term. If the residual term has, over 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Marks Gate will qualify for this right; that being said a lawyer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Marks Gate,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marks Gate valuers.
Last year Gabriel, started to get close to the 80-year threshold with the lease on his leasehold flat in Marks Gate. In buying his flat two decades ago, the lease term was of no interest. by good luck, he became aware that he needed to take steps soon on Extending the lease. Gabriel extended the lease just under the wire last July. Gabriel and the freeholder eventually agreed on sum of £6,000 . If he not met the deadline, the figure would have escalated by at least £900.
Last year we were phoned by Mr and Mrs. D Martin , who bought a first floor flat in Marks Gate in September 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar residencies in Marks Gate with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed per annum. The lease lapsed on 24 November 2104. Given that there were 78 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
An example of a Lease Extension decision for a Marks Gate property is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case was in relation to 1 flat. The unexpired residue of the current lease was 61.36 years.