Unfortunately that a Martlesham Heath residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Martlesham Heath property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Martlesham Heath will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Martlesham Heath with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Martlesham Heath,the lease extension solicitors 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 Martlesham Heath valuers.
In 2014 Dylan, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Martlesham Heath. Having bought his property 19 years previously, the lease term was of little bearing. Thankfully, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Dylan arranged for a lease extension at the eleventh hour last September. Dylan and the freeholder ultimately settled on the final figure of £5,500 . If he not met the deadline, the premium would have become more costly by a minimum £875.
In 2013 we were called by Mr and Mrs. R Parker who, having completed a one bedroom apartment in Martlesham Heath in October 1997. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Martlesham Heath with a long lease were valued about £245,000. The mid-range ground rent payable was £50 collected monthly. The lease finished on 13 April 2094. Taking into account 68 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Dr Stanley Patel completed a studio apartment in Martlesham Heath in January 2002. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical premises in Martlesham Heath with an extended lease were in the region of £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease terminated in 2105. Considering the 79 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.