There is no doubt about it a leasehold property in Martock is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Most flat owners in Martock will meet the qualifying criteria; that being said a conveyancing solicitor should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Yorkshire 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. |
Engaging our service will provide you better control over the value of your Martock leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
John owned a 2 bedroom flat in Martock on the market with a lease of fraction over 61 years remaining. John informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were John to invoke his statutory right. John procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Ms Kate James took over the lease of a purpose-built flat in Martock in August 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Martock with an extended lease were worth £176,200. The average ground rent payable was £65 billed per annum. The lease lapsed on 8 August 2081. Taking into account 56 years remaining we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including costs.
Last Summer we were phoned by Mr L Miller , who took over the lease of a purpose-built flat in Martock in March 1995. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Martock with 100 year plus lease were in the region of £242,600. The mid-range amount of ground rent was £45 collected per annum. The lease finished on 3 August 2092. Having 67 years outstanding we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of costs.