Why you should start your Marlborough lease extension

Main reasons to start your Marlborough lease extension today:

A Marlborough lease depreciates with the years remaining on the lease.

Marlborough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Marlborough enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Marlborough you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to issue a mortgage on a short lease

The trend since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Marlborough lease extensions?

Engaging our service will provide you better control over the value of your Marlborough leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Marlborough Lease Extension Case Summaries:

Louise, Marlborough, Wiltshire,

After unsuccessful discussions with the landlord of her two bedroom apartment in Marlborough, Louise initiated the lease extension process as the 80 year deadline was rapidly coming. The transaction was finalised in April 2006. The freeholder’s charges were kept to an absolute minimum.

Marlborough case:

Mr M Lee moved into a one bedroom flat in Marlborough in March 1995. The dilemma was if we could approximate the price could be for a ninety year lease extension. Identical properties in Marlborough with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced yearly. The lease ended on 7 September 2093. Having 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including professional charges.

Marlborough case:

Last Spring we were approach by Dr R Mitchell , who purchased a studio flat in Marlborough in February 1998. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Similar residencies in Marlborough with 100 year plus lease were valued around £206,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease concluded on 3 August 2082. Having 56 years unexpired we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of fees.