Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Marlow. Inevitably, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Marlow have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give careful deliberation before putting off your Marlow lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
Leasehold premises in Marlow with in excess of one hundred years remaining 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Santander | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancers that we work with undertake Marlow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Adam owned a conversion apartment in Marlow being sold with a lease of fraction over 59 years outstanding. Adam informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Adam to exercise his statutory right. Adam obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr U Bonnet bought a ground floor apartment in Marlow in June 2003. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Identical homes in Marlow with a long lease were in the region of £225,400. The average amount of ground rent was £45 billed per annum. The lease ran out on 1 September 2090. Having 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.
Mr and Mrs. F James bought a one bedroom flat in Marlow in August 1996. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable premises in Marlow with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected yearly. The lease ended on 3 September 2101. Having 75 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.