Marshfield leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Marshfield enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Marshfield you must check if your lease has between 70 and 90 years remaining. There are good reasons why a Marshfield leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Marshfield with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | 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 lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Last year Jasper, came perilously close to the 80-year threshold with the lease on his studio apartment in Marshfield. In buying his home 18 years previously, the lease term was of no significance. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Jasper extended the lease just under the wire in July. Jasper and the freeholder via the managing agents subsequently settled on a premium of £5,000 . If he had missed the deadline, the sum would have escalated by at least £1,125.
Last year we were contacted by Mrs Y Mitchell , who owned a ground floor apartment in Marshfield in February 1997. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable homes in Marshfield with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease terminated in 2085. Taking into account 60 years outstanding we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including legals.
Last Summer we were contacted by Dr Harrison Gunderson , who was assigned a lease of a recently refurbished flat in Marshfield in October 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Marshfield with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 invoiced yearly. The lease came to a finish in 2095. Having 70 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.