With a long leasehold property in Martock, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years remaining. Leasehold owners in Martock with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has less than 80 years outstanding, under the current legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Martock with over 100 years outstanding 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Martock,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Martock valuers.
Off the back of protracted negotiations with the freeholder of her garden apartment in Martock, Katherine commenced the lease extension process as the eighty year mark was quickly advancing. The lease extension was concluded in January 2008. The freeholder’s charges were kept to an absolute minimum.
Ms Jessica Vincent purchased a one bedroom flat in Martock in August 2006. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar properties in Martock with an extended lease were valued around £285,000. The average amount of ground rent was £55 billed quarterly. The lease ran out in 2105. Having 80 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.
Last year we were contacted by Dr U Alexander , who bought a garden apartment in Martock in November 2009. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Martock with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 collected per annum. The lease termination date was on 2 January 2085. Considering the 60 years left we approximated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 plus costs.