Unfortunately that a Marshalls Park residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Marshalls Park property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Marshalls Park will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Marshalls Park with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Marshalls Park 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 lawyer we work with provide it.
Benjamin was the the leasehold owner of a high value flat in Marshalls Park being sold with a lease of fraction over 72 years unexpired. Benjamin on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Mr F López was assigned a lease of a newly refurbished apartment in Marshalls Park in September 2010. We are asked if we could approximate the price could be for a 90 year lease extension. Identical homes in Marshalls Park with 100 year plus lease were worth £275,000. The average ground rent payable was £65 invoiced quarterly. The lease came to a finish in 2093. Given that there were 68 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
Dr H Bell acquired a purpose-built apartment in Marshalls Park in September 2002. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical premises in Marshalls Park with a long lease were in the region of £213,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease terminated in 2082. Given that there were 57 years unexpired we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of costs.