Chances are that where you own a flat in Marple Bridge you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly 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 decades to come.
| 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. |
| 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. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Marple Bridge leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Kyle, started to get near to the eighty-year threshold with the lease on his ground floor flat in Marple Bridge. Having bought his flat 19 years ago, the length of the lease was of little interest. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Kyle was able to extend his lease just under the wire last July. Kyle and the freeholder in the end settled on sum of £5,000 . If the lease had dipped below eighty years, the figure would have gone up by at least £925.
Mr Liam Collins bought a first floor flat in Marple Bridge in July 2010. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Identical premises in Marple Bridge with an extended lease were valued around £265,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease came to a finish on 14 October 2091. Having 66 years unexpired we calculated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including fees.
Last Summer we were phoned by Dr I Martin , who took over the lease of a basement apartment in Marple Bridge in January 2011. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Identical homes in Marple Bridge with a long lease were in the region of £198,800. The average ground rent payable was £55 billed monthly. The lease ended in 2080. Considering the 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus costs.