Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Marylebone. Inevitably, the period of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Marylebone have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Do give careful attention before delaying your Marylebone lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Marylebone,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marylebone valuers.
Last year Michael, started to get near to the 80-year mark with the lease on his two bedroom flat in Marylebone. In buying his home 19 years previously, the length of the lease was of no bearing. by good luck, it dawned on him that he needed to take action soon on a lease extension. Michael was able to extend his lease just under the wire in May. Michael and the freeholder ultimately settled on the final figure of £5,500 . If the lease had slid to less than 80 years, the price would have escalated by a minimum £1,100.
Mr and Mrs. H Flores was assigned a lease of a purpose-built apartment in Marylebone in October 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Marylebone with an extended lease were in the region of £248,000. The average ground rent payable was £65 collected per annum. The lease expired on 4 June 2087. Considering the 63 years left we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including fees.
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 related to 2 flats. The number of years remaining on the existing lease(s) was 24.02 years.