The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Martock can extend the lease for a further 90 years under Leasehold Reform legislation. Please give careful consideration before delaying your Martock lease extension. Shelving that expense now simply increases the price you will ultimately be required to pay to extend the lease.
Leasehold properties in Martock with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest 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 are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
The conveyancers that we work with handle Martock lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Half a year ago Oscar, came seriously near to the 80-year threshold with the lease on his ground floor flat in Martock. In buying his property twenty years previously, the length of the lease was of no concern. Fortunately, he recognised he needed to take steps soon on a lease extension. Oscar extended the lease just in the nick of time in March. Oscar and the landlord ultimately agreed on the final figure of £6,000 . If the lease had dropped below eighty years, the sum would have escalated by a minimum £1,150.
In 2011 we were e-mailed by Mr and Mrs. P Bonnet who, having was assigned a lease of a garden apartment in Martock in January 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative homes in Martock with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 billed yearly. The lease expired on 19 March 2101. Given that there were 75 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
Last Spring we were phoned by Mr T Martinez , who owned a studio flat in Martock in June 1997. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative residencies in Martock with 100 year plus lease were worth £168,800. The average ground rent payable was £60 billed every twelve months. The lease elapsed on 15 February 2081. Taking into account 55 years remaining we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.