Martlesham Heath leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Martlesham Heath enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Martlesham Heath you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold properties in Martlesham Heath with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Martlesham Heath leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her one bedroom flat in Martlesham Heath, Kirsty initiated the lease extension process just as the lease was coming close to the critical eighty-year mark. The transaction was concluded in May 2012. The landlord’s charges were restricted to about 600 GBP.
Mr and Mrs. O Ramírez purchased a garden apartment in Martlesham Heath in November 2000. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical properties in Martlesham Heath with an extended lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced yearly. The lease expiry date was in 2082. Considering the 56 years unexpired we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including costs.
Mr Evan Watson owned a one bedroom flat in Martlesham Heath in July 2004. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Martlesham Heath with an extended lease were valued about £242,600. The average amount of ground rent was £45 collected per annum. The lease expired on 1 July 2093. Given that there were 67 years unexpired we estimated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus professional charges.