Unfortunately that a Marple residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Marple property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining slips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Marple will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. 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 from beginning to end of the formalities.
Leasehold residencies in Marple with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Marple,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marple valuers.
14 months ago Kian, started to get near to the 80-year mark with the lease on his first floor flat in Marple. In buying his property two decades ago, the unexpired term was of little bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Kian extended the lease at the eleventh hour in January. Kian and the freeholder via the management company eventually settled on sum of £5,000 . If the lease had dipped below eighty years, the sum would have become more costly by at least £1,025.
Last month we were approach by Mr Freddie Hall , who completed a purpose-built apartment in Marple in February 2000. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative homes in Marple with 100 year plus lease were worth £225,400. The average ground rent payable was £45 invoiced per annum. The lease lapsed on 25 November 2090. Given that there were 64 years remaining we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 not including expenses.
Mr Jamie Smith took over the lease of a first floor flat in Marple in November 2006. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical flats in Marple with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 billed annually. The lease expired in 2101. Given that there were 75 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.