When it comes to residential leasehold premises in Marlborough, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than 80 years left. Leasehold owners in Marlborough with a lease nearing 81 years left should seriously think of extending it sooner rather than later. Once the lease term has below eighty years left, under the relevant Act the landlord can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Marlborough with more than 100 years outstanding 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 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 |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Marlborough,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Marlborough valuers.
Two years ago Jackson, started to get close to the 80-year threshold with the lease on his one bedroom flat in Marlborough. Having bought his property twenty years previously, the length of the lease was of little bearing. Fortunately, he recognised he needed to take action soon on Extending the lease. Jackson arranged for a lease extension at the eleventh hour in July. Jackson and the landlord in the end settled on an amount of £5,000 . If the lease had dipped lower than eighty years, the amount would have become more costly by at least £900.
In 2014 we were called by Dr Lucy Clarke who, having took over the lease of a garden apartment in Marlborough in October 2002. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable homes in Marlborough with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 collected per annum. The lease came to a finish on 8 April 2100. Taking into account 74 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Dr Caleb Johnson moved into a basement flat in Marlborough in August 2002. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparable homes in Marlborough with a long lease were worth £243,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease ran out on 6 June 2089. Considering the 63 years left we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of costs.