For those whose Marlow flat is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|Birmingham Midshires|| Minimum 70 years from the date of the mortgage.|
|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.|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
The lawyers 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 lawyer we work with provide it.
Subsequent to protracted negotiations with the landlord of her studio flat in Marlow, Molly initiated the lease extension process just as the lease was approaching the crucial eighty-year threshold. The lease extension was concluded in May 2008. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were approach by Mr and Mrs. Y Nelson , who owned a purpose-built apartment in Marlow in June 2000. The question was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Identical flats in Marlow with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease expired on 4 January 2091. Taking into account 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
In 2012 we were called by Dr I Campbell who, having purchased a ground floor flat in Marlow in June 2001. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable premises in Marlow with a long lease were worth £246,800. The average amount of ground rent was £60 billed per annum. The lease terminated on 12 September 2071. Considering the 50 years outstanding we estimated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of fees.