Marlow leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Marlow tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Marlow you really ought to check if your lease has between seventy and 90 years left. There are good reasons why a Marlow leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Marlow can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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 dealing with Marlow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the landlord of her leasehold apartment in Marlow, Aimee commenced the lease extension process as the eighty year threshold was swiftly coming. The legal work completed in April 2007. The landlord’s charges were kept to an absolute minimum.
Dr G Lewis took over the lease of a studio apartment in Marlow in February 1997. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative homes in Marlow with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease termination date was in 2095. Taking into account 70 years remaining we calculated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 plus costs.
In 2010 we were e-mailed by Dr Nathaniel Davis who, having owned a first floor apartment in Marlow in July 1996. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparative premises in Marlow with 100 year plus lease were worth £246,800. The average ground rent payable was £60 collected annually. The lease expired in 2075. Considering the 50 years left we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus fees.