It’s a harsh truth that a Marple residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Marple property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Most flat owners in Marple will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Marple leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a studio apartment in Marple on the market with a lease of a little over fifty eight years unexpired. Lucas on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. J Clarke was assigned a lease of a purpose-built apartment in Marple in May 2006. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparable premises in Marple with 100 year plus lease were valued about £264,000. The mid-range ground rent payable was £60 collected annually. The lease expiry date was on 4 April 2079. Considering the 53 years left we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including professional charges.
Last month we were phoned by Dr Henry Khan , who was assigned a lease of a recently refurbished flat in Marple in February 1997. We are asked if we could estimate the price would be to extend the lease by 90 years. Identical premises in Marple with 100 year plus lease were worth £225,400. The average ground rent payable was £45 invoiced yearly. The lease expiry date was in 2090. Taking into account 64 years left we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 plus expenses.