There is no doubt about it a leasehold flat or house in Marlow is a wasting asset as a result of the shortening lease. If the lease has, more than one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in Marlow will qualify for this right; however a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Marlow with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Marlow,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Marlow valuers.
Last Christmas Jake, started to get near to the 80-year mark with the lease on his ground floor flat in Marlow. In buying his home 19 years previously, the unexpired term was of little significance. by good luck, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Jake was able to extend his lease at the eleventh hour last August. Jake and the landlord ultimately agreed on a premium of £5,000 . If the lease had fallen below 80 years, the price would have increased by a minimum £900.
In 2014 we were contacted by Mr and Mrs. I Brown who, having purchased a newly refurbished flat in Marlow in September 2010. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar homes in Marlow with a long lease were valued around £235,200. The average amount of ground rent was £45 collected monthly. The lease terminated in 2091. Taking into account 66 years left we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Mrs Eleanor Moore was assigned a lease of a first floor apartment in Marlow in February 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Marlow with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended on 3 November 2102. Taking into account 77 years remaining we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.