Chances are that where you own a flat in Marple you actually own a long leasehold interest over your property
Leasehold residencies in Marple with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
|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.|
|Coventry Building Society||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.|
|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.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Virgin||85 years at the time of completion. If it's less, we require it to be extended on or before completion.|
The conveyancers that we work with undertake Marple lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In recent months Benjamin, came dangerously close to the eighty-year threshold with the lease on his first floor flat in Marple. Having bought his property two decades ago, the length of the lease was of no bearing. Luckily, he recognised he would imminently be paying an inflated amount for a lease extension. Benjamin extended the lease at the eleventh hour last July. Benjamin and the freeholder eventually agreed on the final figure of £6,000 . If the lease had dipped below 80 years, the amount would have become more exhorbitant by at least £1,075.
In 2014 we were approached by Mr and Mrs. M Petit who, having completed a first floor apartment in Marple in February 1999. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Identical properties in Marple with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 billed annually. The lease concluded in 2080. Given that there were 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.
Mr C Peterson purchased a ground floor flat in Marple in July 1999. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in Marple with a long lease were worth £250,000. The mid-range ground rent payable was £50 invoiced yearly. The lease finished on 7 September 2091. Given that there were 70 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.