Unfortunately that a Markyate residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Markyate property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Markyate will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Markyate with over one hundred years remaining 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Markyate,the lease extension lawyers 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 Markyate valuers.
Last October Henry, came seriously close to the eighty-year threshold with the lease on his basement apartment in Markyate. Having bought his property two decades ago, the unexpired term was of minimal significance. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Henry arranged for a lease extension just ahead of time in April. Henry and the freeholder via the managing agents in the end settled on sum of £5,000 . If the lease had dropped lower than eighty years, the amount would have become more costly by a minimum £925.
Last month we were phoned by Mr and Mrs. V Lefebvre , who owned a ground floor flat in Markyate in November 2006. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable premises in Markyate with a long lease were worth £243,000. The average amount of ground rent was £65 billed per annum. The lease ran out on 10 April 2089. Given that there were 63 years remaining we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus fees.
Mr and Mrs. T Parker completed a first floor apartment in Markyate in June 2006. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative premises in Markyate with a long lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced annually. The lease expired in 2078. Considering the 52 years unexpired we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.