Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Marks Gate. Inevitably, the term of lease left reduces over time. This may slip 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 expensive it will be to extend the lease. Eligible leaseholders in Marks Gate have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give due consideration before putting off your Marks Gate lease extension. Holding off the cost now only increases the price you will eventually have to pay to extend your lease
Leasehold properties in Marks Gate with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Marks Gate can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Marks Gate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her basement flat in Marks Gate, Tia started the lease extension process as the eighty year mark was rapidly nearing. The lease extension was concluded in September 2009. The freeholder’s costs were kept to an absolute minimum.
Last year we were phoned by Dr Millie Roberts , who was assigned a lease of a one bedroom apartment in Marks Gate in August 2007. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Marks Gate with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 collected yearly. The lease ended on 5 October 2092. Having 67 years outstanding we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus fees.
An example of a Lease Extension case for a Marks Gate premises 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 affected 1 flat. The unexpired residue of the current lease was 61.36 years.