With a domestic leasehold property in Marlow, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Residents in Marlow with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under eighty years left, under the current statute the landlord can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Engaging our service gives you increased control over the value of your Marlow leasehold, as your property will be more valuable and marketable in respect of 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.
Two years ago Austin, came perilously close to the 80-year mark with the lease on his ground floor flat in Marlow. In buying his flat two decades ago, the lease term was of minimal relevance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Austin extended the lease just in the nick of time in April. Austin and the freeholder subsequently agreed on an amount of £5,500 . If the lease had dropped below eighty years, the price would have become more costly by at least £1,125.
Ms E Flores acquired a ground floor apartment in Marlow in September 2012. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical premises in Marlow with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease concluded in 2076. Having 50 years remaining we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 plus legals.
Last Autumn we were called by Mr and Mrs. B Rose , who took over the lease of a first floor apartment in Marlow in November 2006. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Similar flats in Marlow with 100 year plus lease were worth £208,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ran out on 16 September 2087. Taking into account 61 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.