For anyone whose Marston Moretaine property is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold premises in Marston Moretaine with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Marston Moretaine,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 in-depth market knowledge and the close ties they enjoy with Marston Moretaine valuers.
Subsequent to unsuccessful discussions with the freeholder of her two bedroom apartment in Marston Moretaine, Nicole initiated the lease extension process as the 80 year mark was fast approaching. The lease extension was concluded in July 2011. The landlord’s costs were negotiated to below 600 GBP.
Last Spring we were contacted by Mr and Mrs. F Brown , who bought a ground floor flat in Marston Moretaine in June 1997. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative flats in Marston Moretaine with an extended lease were valued about £203,200. The average ground rent payable was £65 invoiced annually. The lease elapsed in 2086. Considering the 61 years left we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of fees.
In 2009 we were approached by Mrs R Gray who, having owned a studio apartment in Marston Moretaine in November 2010. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Marston Moretaine with an extended lease were worth £260,000. The average amount of ground rent was £50 collected annually. The lease lapsed in 2097. Taking into account 72 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.