Top reasons for Marshalls Park lease extension

Why you should start your Marshalls Park lease extension today:

A Marshalls Park lease depreciates with the years remaining on the lease.

Marshalls Park leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Marshalls Park will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Mortgage lenders may not finance a property with a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Marshalls Park lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you enhanced control over the value of your Marshalls Park leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Marshalls Park Lease Extension Case Studies:

Toby, Marshalls Park, London,

Toby was the the leasehold owner of a 2 bedroom flat in Marshalls Park on the market with a lease of just over sixty years unexpired. Toby informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Toby to invoke his statutory right. Toby obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Marshalls Park case:

Last Summer we were called by Mr and Mrs. O Kelly , who completed a one bedroom flat in Marshalls Park in October 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Marshalls Park with a long lease were in the region of £300,000. The average ground rent payable was £50 billed every twelve months. The lease expired in 2102. Having 76 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.

Marshalls Park case:

Mr and Mrs. N Vincent purchased a one bedroom apartment in Marshalls Park in June 2009. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative premises in Marshalls Park with 100 year plus lease were worth £252,800. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out in 2091. Taking into account 65 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus costs.