The only way is down when it comes to Martlesham lease terms. Martlesham properties that have a remaining term fewer than 80 years will reduce in market price at a rapid rate, and the cost of extending your lease will increase.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Martlesham leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Logan, came precariously near to the eighty-year mark with the lease on his leasehold flat in Martlesham. In buying his flat two decades ago, the unexpired term was of no interest. by good luck, he realised he needed to take steps soon on Extending the lease. Logan was able to extend his lease at the eleventh hour last May. Logan and the freeholder via the managing agents eventually settled on an amount of £6,000 . If the lease had slid below 80 years, the figure would have become more exhorbitant by at least £900.
In 2012 we were called by Mr M Johnson who, having completed a ground floor flat in Martlesham in February 2010. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar premises in Martlesham with an extended lease were valued around £181,600. The average ground rent payable was £55 billed per annum. The lease ran out on 25 April 2077. Considering the 52 years left we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.
In 2011 we were called by Dr V Rogers who, having moved into a purpose-built apartment in Martlesham in January 2002. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical premises in Martlesham with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 invoiced monthly. The lease concluded on 15 July 2097. Having 72 years as a residual term we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of costs.