It’s a harsh certainty that a Marshfield residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Marshfield property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Most flat owners in Marshfield will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
The conveyancers that we work with undertake Marshfield 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.
Off the back of protracted correspondence with the freeholder of her ground floor flat in Marshfield, Samantha commenced the lease extension process just as her lease was coming close to the critical eighty-year mark. The lease extension was finalised in May 2006. The landlord’s charges were kept to an absolute minimum.
Last Winter we were phoned by Dr Jayden Hill , who completed a studio apartment in Marshfield in October 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar homes in Marshfield with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease end date was on 26 June 2094. Having 68 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Mrs E Cooper took over the lease of a ground floor apartment in Marshfield in August 2010. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Marshfield with an extended lease were in the region of £285,000. The average ground rent payable was £55 invoiced monthly. The lease terminated on 1 October 2105. Considering the 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.