The closer a domestic lease in Marlow nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Marlow will qualify for this right; however a conveyancer will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Marlow with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining 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 wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy negotiations with the freeholder of her one bedroom flat in Marlow, Chantelle commenced the lease extension process as the eighty year threshold was rapidly coming. The legal work was concluded in March 2006. The freeholder’s costs were restricted to slightly above 700 GBP.
Last Winter we were contacted by Mr and Mrs. C Kelly , who acquired a first floor flat in Marlow in February 2010. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar properties in Marlow with an extended lease were in the region of £218,000. The average ground rent payable was £45 collected annually. The lease finished in 2088. Given that there were 63 years left we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of professional charges.
In 2010 we were e-mailed by Dr U Sharif who, having was assigned a lease of a purpose-built flat in Marlow in October 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Marlow with an extended lease were in the region of £265,000. The mid-range ground rent payable was £55 collected every twelve months. The lease finished on 7 November 2099. Taking into account 74 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.