Chances are that where you own a flat in Marylebone you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same 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 decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 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 |
Using our service gives you better control over the value of your Marylebone leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Tyler, came seriously close to the eighty-year mark with the lease on his basement flat in Marylebone. In buying his home 18 years previously, the lease term was of no concern. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Tyler was able to extend his lease just under the wire last September. Tyler and the landlord subsequently agreed on a premium of £5,500 . If he had missed the deadline, the sum would have become more costly by a minimum £1,075.
Last Christmas we were contacted by Mrs Alisha Garcia , who owned a studio flat in Marylebone in July 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Marylebone with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 collected every twelve months. The lease expired on 9 January 2077. Taking into account 51 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including expenses.
An example of a Lease Extension case for a Marylebone premises is Flats 37 & 39 88/90 Portland Place in December 2010. The Tribunal determined that the premium payable for the lease extensions in respect of these two flats is as follows:- For Flat 37, the sum of £385,230.00 For Flat 39, the sum of £436,780.00 This case was in relation to 2 flats. The remaining number of years on the lease was 24.02 years.