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 becomes more expensive. It is the case that most Marlow tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Marlow you really ought to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Marlow with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Marlow can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Marlow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ben owned a high value apartment in Marlow on the market with a lease of fraction over 59 years outstanding. Ben on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Ms Y Miller was assigned a lease of a basement apartment in Marlow in January 2012. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar properties in Marlow with an extended lease were worth £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired on 22 November 2095. Considering the 69 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
In 2011 we were phoned by Mr and Mrs. H Robinson who, having owned a garden apartment in Marlow in May 2008. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical flats in Marlow with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired on 18 August 2106. Taking into account 80 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.