Marlow leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Marlow residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Marlow you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Marlow leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Elijah, came precariously close to the 80-year mark with the lease on his studio flat in Marlow. Having bought his property 19 years ago, the unexpired term was of no bearing. by good luck, he noticed he needed to take steps soon on Extending the lease. Elijah extended the lease just ahead of time last April. Elijah and the freeholder subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have become more costly by at least £1,075.
Mr and Mrs. I Garcia was assigned a lease of a one bedroom apartment in Marlow in February 2005. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparative flats in Marlow with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 collected annually. The lease expiry date was in 2106. Given that there were 80 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
In 2011 we were approached by Ms Leah González who, having owned a one bedroom flat in Marlow in November 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Marlow with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 collected annually. The lease expired on 12 June 2086. Considering the 60 years left we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.