The re-sale value of a leasehold property in Marple is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that formalities can be finalised ahead of the 80 year mark. Current legislation entitles Marple qualifying lessees to an additional term of 90 years on top of the existing term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging 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 wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Charlie, started to get near to the eighty-year mark with the lease on his two bedroom flat in Marple. In buying his home two decades ago, the length of the lease was of little bearing. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Charlie was able to extend his lease at the eleventh hour in June. Charlie and the freeholder subsequently settled on the final figure of £6,000 . If he not met the deadline, the amount would have escalated by a minimum £1,125.
In 2009 we were contacted by Dr J Martin who, having purchased a one bedroom flat in Marple in April 2006. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar properties in Marple with a long lease were in the region of £208,200. The average amount of ground rent was £65 invoiced per annum. The lease ended in 2087. Considering the 61 years unexpired we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus professional charges.
Last Christmas we were contacted by Mrs A Martínez , who owned a studio flat in Marple in November 2007. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical properties in Marple with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 invoiced per annum. The lease lapsed on 26 July 2098. Having 72 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.