The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Marske and Upleatham may extend the lease for a further ninety years in accordance with legislation. Please give careful consideration before delaying your Marske and Upleatham lease extension. Postponing that expense today simply increases the amount you will eventually be required to pay to extend the lease.
Leasehold residencies in Marske and Upleatham with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Marske and Upleatham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marske and Upleatham valuers.
Aaron was the the leasehold proprietor of a conversion flat in Marske and Upleatham on the market with a lease of just over fifty eight years unexpired. Aaron on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr Aiden Robinson owned a one bedroom flat in Marske and Upleatham in September 2006. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar flats in Marske and Upleatham with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 billed monthly. The lease concluded in 2080. Taking into account 54 years unexpired we calculated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 plus costs.
In 2013 we were approached by Mr Harvey Adams who, having purchased a one bedroom flat in Marske and Upleatham in October 2005. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Identical premises in Marske and Upleatham with a long lease were valued about £295,000. The average ground rent payable was £45 collected annually. The lease ended on 20 May 2100. Considering the 74 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.