For anyone whose Marshfield property is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold properties in Marshfield with more than 100 years left on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Marshfield leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Seth was the the leasehold proprietor of a high value apartment in Marshfield on the market with a lease of a little over 72 years outstanding. Seth on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Seth to exercise his statutory right. Seth obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2013 we were phoned by Ms H Pérez who, having owned a one bedroom apartment in Marshfield in August 1998. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar residencies in Marshfield with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 collected annually. The lease lapsed in 2101. Having 76 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
Mr and Mrs. K Mitchell owned a purpose-built flat in Marshfield in April 1999. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Marshfield with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease end date was on 10 July 2081. Taking into account 56 years left we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including expenses.