The market value of Marlow leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years
Leasehold premises in Marlow with more than 100 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 upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you increased control over the value of your Marlow leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the freeholder of her garden apartment in Marlow, Anna initiated the lease extension process as the eighty year deadline was swiftly advancing. The transaction completed in August 2012. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. H Davis who, having purchased a one bedroom flat in Marlow in April 2010. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparative flats in Marlow with 100 year plus lease were in the region of £208,200. The average amount of ground rent was £65 collected every twelve months. The lease ended on 7 March 2087. Considering the 61 years left we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus fees.
In 2009 we were phoned by Dr Y López who, having purchased a one bedroom apartment in Marlow in September 1997. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable properties in Marlow with a long lease were valued around £260,000. The average amount of ground rent was £50 collected quarterly. The lease finished on 18 June 2098. Having 72 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.