Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Marlow. Clearly, the period of lease remaining reduces over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Marlow have the right to extend the lease for an additional ninety years in accordance with statute. Do give careful deliberation before putting off your Marlow lease extension. Holding off that expense now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 experts that we work with will always be willing 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.
Trailing unsuccessful correspondence with the landlord of her basement flat in Marlow, Ashleigh started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The legal work completed in July 2008. The freeholder’s costs were restricted to about 500 GBP.
Mrs Rachael Bennett owned a first floor flat in Marlow in April 1995. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative properties in Marlow with a long lease were worth £265,000. The mid-range ground rent payable was £55 collected annually. The lease concluded on 24 May 2099. Having 74 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
In 2014 we were approached by Mrs E Rivera who, having purchased a one bedroom apartment in Marlow in February 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Marlow with a long lease were worth £166,400. The average amount of ground rent was £60 billed quarterly. The lease expiry date was in 2079. Considering the 54 years remaining we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus expenses.