Marple Bridge 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 the lease becomes more expensive. The majority of owners of residential leasehold property in Marple Bridge enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Marple Bridge you must check if your lease has between 70 and ninety years remaining. There are good reasons why a Marple Bridge flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Marple Bridge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marple Bridge valuers.
Eliot was the the leasehold owner of a conversion flat in Marple Bridge on the market with a lease of a few days over 72 years remaining. Eliot on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. I Watson took over the lease of a garden flat in Marple Bridge in November 2007. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Marple Bridge with 100 year plus lease were valued around £196,400. The average ground rent payable was £55 collected per annum. The lease came to a finish on 28 July 2079. Given that there were 54 years left we calculated the premium to the landlord to extend the lease to be within £35,200 and £40,600 exclusive of costs.
In 2013 we were called by Dr Jude Khan who, having purchased a one bedroom apartment in Marple Bridge in March 1995. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable flats in Marple Bridge with 100 year plus lease were worth £295,000. The average ground rent payable was £45 collected per annum. The lease ran out on 27 July 2099. Having 74 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.