Unfortunately that a Marple residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Marple property prices.Once your lease nears 85ish years, you should 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 due. Most flat owners in Marple will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Marple,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Marple valuers.
After protracted discussions with the landlord of her ground floor flat in Marple, Abigail commenced the lease extension process as the eighty year deadline was rapidly approaching. The lease extension was finalised in June 2008. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were called by Dr Hugo Ramírez , who moved into a first floor flat in Marple in January 2004. The question was if we could approximate the price could be to extend the lease by ninety years. Identical flats in Marple with a long lease were worth £270,000. The average amount of ground rent was £55 billed yearly. The lease ended in 2101. Given that there were 75 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Mr Y Thompson was assigned a lease of a purpose-built flat in Marple in March 1998. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical properties in Marple with 100 year plus lease were in the region of £173,800. The average amount of ground rent was £60 collected per annum. The lease lapsed in 2081. Having 55 years as a residual term we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.