It’s a harsh truth that a Marston Moretaine residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Marston Moretaine property prices.Once your lease gets to 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 slips below 80 years - otherwise a higher premium will be due. The majority of flat owners in Marston Moretaine will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with undertake Marston Moretaine 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.
After unsuccessful discussions with the freeholder of her leasehold apartment in Marston Moretaine, Nicole started the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension completed in June 2009. The landlord’s costs were kept to an absolute minimum.
In 2013 we were phoned by Dr Alex Brooks who, having completed a purpose-built apartment in Marston Moretaine in June 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Marston Moretaine with an extended lease were in the region of £245,000. The average amount of ground rent was £45 billed annually. The lease elapsed on 4 March 2093. Having 68 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
Dr Y Parker bought a one bedroom apartment in Marston Moretaine in September 1996. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar homes in Marston Moretaine with an extended lease were valued about £280,000. The average amount of ground rent was £55 billed monthly. The lease finished on 14 August 2104. Given that there were 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.