When it comes to residential leasehold premises in Marlow, you are actually buying a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Leasehold owners in Marlow with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has below eighty years left, under the relevant legislation the landlord is entitled to calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Marlow with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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. |
Lease extensions in Marlow can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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.
Eliot owned a 2 bedroom apartment in Marlow being sold with a lease of a little over 61 years left. Eliot on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
Last September we were e-mailed by Dr F Edwards , who bought a basement flat in Marlow in October 2010. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Marlow with a long lease were worth £265,000. The mid-range amount of ground rent was £50 collected annually. The lease finished on 14 July 2099. Having 73 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Last May we were called by Dr R Rose , who acquired a ground floor apartment in Marlow in June 1995. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in Marlow with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 billed quarterly. The lease concluded on 17 April 2079. Considering the 53 years left we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus costs.