Unfortunately 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 early years due to the deflation being disguised by increases in the Marple property prices.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 slips 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 conveyancer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Marple with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Marple leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Leon, started to get close to the eighty-year threshold with the lease on his basement apartment in Marple. Having bought his property 18 years previously, the lease term was of minimal importance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Leon was able to extend his lease just under the wire last June. Leon and the freeholder eventually agreed on an amount of £5,500 . If the lease had descended below 80 years, the sum would have gone up by a minimum £900.
Last year we were phoned by Ms Sophie Ricardo , who bought a first floor apartment in Marple in January 1996. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Marple with a long lease were worth £176,200. The mid-range amount of ground rent was £65 billed monthly. The lease expired on 28 August 2082. Considering the 56 years unexpired we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including fees.
Last Autumn we were called by Ms L Khan , who completed a one bedroom apartment in Marple in April 1995. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparative properties in Marple with a long lease were in the region of £242,600. The mid-range amount of ground rent was £45 collected monthly. The lease terminated on 18 July 2093. Considering the 67 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including legals.