The closer a residential lease in Marple gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Marple will qualify for this right; however a conveyancer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Marple with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Marple,the lease extension solicitors that we work with will always be willing 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.
In recent months Harry, started to get near to the eighty-year mark with the lease on his studio flat in Marple. In buying his property 19 years previously, the length of the lease was of minimal concern. As luck would have it, he noticed he needed to take action soon on a lease extension. Harry extended the lease just under the wire in March. Harry and the freeholder via the managing agents in the end agreed on a premium of £5,000 . If the lease had slid to less than eighty years, the figure would have gone up by a minimum £1,100.
Last April we were contacted by Dr Melissa Murphy , who bought a one bedroom apartment in Marple in May 1995. We are asked if we could approximate the price could be for a 90 year lease extension. Similar residencies in Marple with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 collected monthly. The lease came to a finish on 17 March 2075. Given that there were 50 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 plus expenses.
Last Autumn we were contacted by Dr O Cox , who was assigned a lease of a one bedroom apartment in Marple in June 1998. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative properties in Marple with an extended lease were valued around £208,200. The mid-range ground rent payable was £65 collected every twelve months. The lease concluded in 2086. Taking into account 61 years unexpired we estimated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of legals.