The only way is down when it comes to Marylebone lease terms. Marylebone properties that have a remaining term shorter than 80 years will reduce in market price at a rapid rate, and the cost of extending your lease will go up.
Leasehold residencies in Marylebone with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 enhanced control over the value of your Marylebone leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy negotiations with the freeholder of her purpose-built flat in Marylebone, Ella started the lease extension process as the 80 year deadline was swiftly nearing. The lease extension was finalised in November 2015. The landlord’s fees were negotiated to approximately 450 pounds.
Mr and Mrs. E Murphy took over the lease of a one bedroom flat in Marylebone in August 2005. We are asked if we could estimate the price would be to prolong the lease by 90 years. Similar residencies in Marylebone with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed per annum. The lease ended on 18 April 2081. Taking into account 55 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus costs.
An example of a Lease Extension decision for a Marylebone residence 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 affected 2 flats. The unexpired lease term was 24.02 years.