Marske and Upleatham leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Marske and Upleatham will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you enhanced control over the value of your Marske and Upleatham leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Max was the the leasehold owner of a studio apartment in Marske and Upleatham being sold with a lease of just over 72 years outstanding. Max on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Max to invoke his statutory right. Max procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Mr V Edwards moved into a purpose-built apartment in Marske and Upleatham in November 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative homes in Marske and Upleatham with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 collected quarterly. The lease terminated on 1 June 2086. Given that there were 61 years unexpired we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 not including expenses.
Last year we were e-mailed by Mrs Ella Stewart , who took over the lease of a garden apartment in Marske and Upleatham in May 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Marske and Upleatham with 100 year plus lease were in the region of £171,800. The average amount of ground rent was £55 collected every twelve months. The lease expiry date was in 2075. Taking into account 50 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of legals.