The closer a residential lease in Martock gets to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Martock will meet the qualifying criteria; however a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
After unsuccessful correspondence with the freeholder of her ground floor flat in Martock, Chelsea started the lease extension process just as her lease was nearing the all-important 80-year threshold. The transaction was concluded in November 2012. The landlord’s fees were restricted to slightly above 550 pounds.
Mr William Michel acquired a first floor apartment in Martock in May 2011. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Martock with a long lease were valued about £254,200. The mid-range ground rent payable was £60 collected per annum. The lease expired on 21 September 2077. Considering the 51 years unexpired we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus expenses.
Last year we were phoned by Mrs Melissa Nguyen , who moved into a recently refurbished flat in Martock in October 2001. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Martock with an extended lease were valued about £210,600. The mid-range ground rent payable was £45 invoiced annually. The lease concluded in 2088. Having 62 years as a residual term we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus costs.