Marple Bridge leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Marple Bridge tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Marple Bridge you must investigate if your lease has between 70 and 90 years left. There are good reasons why a Marple Bridge leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Marple Bridge with in excess of 100 years left 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 freeholder in Marple Bridge,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marple Bridge valuers.
Jude owned a conversion apartment in Marple Bridge on the market with a lease of just over 61 years unexpired. Jude on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jude to invoke his statutory right. Jude procured expert advice and secured satisfactory deal informally and sell the flat.
Last year we were e-mailed by Ms Lydia Lambert , who was assigned a lease of a one bedroom apartment in Marple Bridge in April 1997. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable residencies in Marple Bridge with 100 year plus lease were valued around £174,200. The average ground rent payable was £55 billed monthly. The lease expired in 2077. Given that there were 51 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including professional charges.
Last month we were e-mailed by Dr Benjamin Ward , who purchased a one bedroom flat in Marple Bridge in August 1996. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Comparable residencies in Marple Bridge with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 billed annually. The lease end date was on 12 April 2097. Given that there were 71 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.