Unfortunately that a Marlow residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Marlow property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Marlow will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Marlow with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
|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.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|National Westminster Bank|| Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
Lease extensions in Marlow can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Marlow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Adam, came very close to the 80-year threshold with the lease on his studio apartment in Marlow. Having bought his property two decades ago, the unexpired term was of little importance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Adam arranged for a lease extension just in the nick of time last March. Adam and the freeholder eventually agreed on the final figure of £5,000 . If the lease had dropped below eighty years, the price would have become more exhorbitant by a minimum £950.
Last year we were contacted by Ms D García , who bought a one bedroom flat in Marlow in August 1996. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Similar premises in Marlow with a long lease were valued around £254,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished in 2072. Given that there were 51 years left we calculated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of professional charges.
Mrs Rhiannon Watson acquired a newly refurbished apartment in Marlow in October 1999. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable residencies in Marlow with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 collected yearly. The lease termination date was on 7 August 2083. Having 62 years remaining we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 not including professional charges.