When it comes to long leasehold property in Marshfield, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Leasehold owners in Marshfield with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once a lease has less than 80 years left, under the relevant legislation the freeholder can calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Marshfield with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Marshfield,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marshfield valuers.
Last October Tommy, started to get close to the 80-year mark with the lease on his ground floor flat in Marshfield. In buying his property two decades ago, the length of the lease was of minimal bearing. by good luck, he realised he needed to take steps soon on Extending the lease. Tommy extended the lease at the eleventh hour last March. Tommy and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If the lease had fallen lower than 80 years, the price would have increased by at least £925.
Last year we were called by Mrs Eleanor Nguyen , who acquired a newly refurbished flat in Marshfield in May 2008. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable homes in Marshfield with a long lease were worth £265,000. The average amount of ground rent was £50 invoiced per annum. The lease concluded on 1 June 2099. Taking into account 73 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2013 we were e-mailed by Dr K Lefebvre who, having owned a one bedroom apartment in Marshfield in April 2004. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative homes in Marshfield with an extended lease were worth £264,000. The mid-range ground rent payable was £60 collected quarterly. The lease finished in 2079. Taking into account 53 years left we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 not including professional charges.