The nearer a residential lease in Marylebone nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 125 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Marylebone will qualify for this right; that being said a lawyer will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Marylebone with in excess of one hundred years outstanding 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Marylebone leasehold, as your property will be more valuable and marketable in respect of 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.
Dylan was the the leasehold owner of a 2 bedroom apartment in Marylebone being marketed with a lease of fraction over 61 years unexpired. Dylan informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2009 we were called by Dr Rory Gray who, having acquired a ground floor flat in Marylebone in January 2005. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar residencies in Marylebone with an extended lease were valued around £233,200. The average amount of ground rent was £60 billed annually. The lease expiry date was in 2086. Considering the 61 years remaining we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 not including costs.
An example of a Lease Extension decision for a Marylebone property 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.