Marske By The Sea 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. The majority of owners of residential leasehold property in Marske By The Sea enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Marske By The Sea you really ought to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Marske By The Sea 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.
Harvey owned a studio apartment in Marske By The Sea being marketed with a lease of a few days over fifty eight years remaining. Harvey on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last year we were phoned by Mr Ethan Wood , who took over the lease of a studio flat in Marske By The Sea in April 2006. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar properties in Marske By The Sea with a long lease were in the region of £285,000. The average ground rent payable was £55 billed monthly. The lease finished in 2106. Given that there were 80 years left we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.
Last Autumn we were approach by Ms Alisha Rodríguez , who completed a ground floor apartment in Marske By The Sea in August 2011. The question was if we could estimate the price would be to prolong the lease by an additional years. Identical premises in Marske By The Sea with a long lease were valued around £200,800. The average amount of ground rent was £65 billed quarterly. The lease finished on 14 January 2086. Considering the 60 years outstanding we estimated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus fees.