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 fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Marlow. Clearly, the term of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Marlow have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give due consideration before putting off your Marlow lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold premises in Marlow with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Irrespective of whether you are a tenant or a landlord in Marlow,the lease extension lawyers that we work with will always be prepared 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.
During the course of the last few months Benjamin, started to get near to the eighty-year mark with the lease on his basement apartment in Marlow. In buying his home 19 years previously, the unexpired term was of little importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Benjamin arranged for a lease extension just under the wire last April. Benjamin and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If the lease had dipped below 80 years, the premium would have become more exhorbitant by at least £1,000.
In 2011 we were contacted by Mr and Mrs. J Girard who, having owned a ground floor flat in Marlow in April 1998. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Marlow with an extended lease were worth £256,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease terminated in 2078. Given that there were 52 years outstanding we estimated the premium to the landlord to extend the lease to be between £39,000 and £45,000 plus expenses.
In 2014 we were called by Mr Seth Jones who, having purchased a garden apartment in Marlow in January 1998. The question was if we could estimate the premium would be to prolong the lease by an additional years. Comparable homes in Marlow with an extended lease were in the region of £218,000. The average ground rent payable was £45 collected per annum. The lease expired in 2089. Having 63 years unexpired we estimated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of fees.