There is no doubt about it a leasehold property in Marple is a wasting asset as a result of the shortening lease. If the residual term has, beyond 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner than later. Most flat owners in Marple will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Marple,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marple valuers.
18 months ago Leon, came precariously near to the eighty-year threshold with the lease on his garden flat in Marple. Having bought his flat two decades ago, the length of the lease was of little interest. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. Leon was able to extend his lease just under the wire last May. Leon and the freeholder eventually agreed on a premium of £5,000 . If the lease had slipped below 80 years, the sum would have increased by at least £1,100.
Dr G Williams moved into a garden flat in Marple in July 2008. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable premises in Marple with 100 year plus lease were valued about £255,000. The average amount of ground rent was £50 collected every twelve months. The lease expired on 1 October 2094. Given that there were 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Last Autumn we were e-mailed by Mrs Louise Alexander , who completed a purpose-built flat in Marple in January 2009. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable flats in Marple with a long lease were worth £246,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease ran out on 14 November 2074. Having 50 years left we calculated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 not including costs.