When it comes to long leasehold property in Martlesham Heath, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years left. Leasehold owners in Martlesham Heath with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under 80 years left, under the current legislation the freeholder is entitled to calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Martlesham Heath with in excess of 100 years remaining 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Martlesham Heath can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Martlesham Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Sebastian, started to get close to the eighty-year threshold with the lease on his first floor apartment in Martlesham Heath. In buying his flat twenty years ago, the lease term was of little interest. Luckily, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Sebastian extended the lease just under the wire in June. Sebastian and the freeholder via the managing agents subsequently settled on the final figure of £5,000 . If he not met the deadline, the premium would have escalated by at least £1,125.
Last Summer we were e-mailed by Mr and Mrs. S Roux , who took over the lease of a first floor apartment in Martlesham Heath in May 1997. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable properties in Martlesham Heath with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ended on 5 April 2105. Given that there were 80 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Last Spring we were contacted by Mr and Mrs. T Smith , who moved into a ground floor apartment in Martlesham Heath in January 2000. The question was if we could estimate the price would be to extend the lease by an additional years. Identical properties in Martlesham Heath with a long lease were worth £200,800. The average ground rent payable was £65 collected every twelve months. The lease finished in 2085. Having 60 years left we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of fees.