Chances are that where you own a flat in Marlborough you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Marlborough leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the freeholder of her basement flat in Marlborough, Georgina commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The transaction completed in May 2011. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. J Kelly who, having owned a recently refurbished flat in Marlborough in August 2002. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Identical homes in Marlborough with a long lease were valued about £208,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease terminated on 21 February 2082. Having 57 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus costs.
Last Christmas we were approach by Ms Alice Fournier , who acquired a basement flat in Marlborough in November 2010. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparative flats in Marlborough with an extended lease were valued around £200,000. The average amount of ground rent was £50 collected quarterly. The lease expired on 26 October 2102. Considering the 77 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.