March leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in March will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in March can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring March lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the landlord of her leasehold apartment in March, Niamh commenced the lease extension process just as the lease was approaching the all-important 80-year deadline. The transaction completed in July 2015. The landlord’s costs were kept to an absolute minimum.
Mr Daniel Kelly completed a garden apartment in March in October 2000. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in March with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 invoiced per annum. The lease expired in 2084. Given that there were 58 years left we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.
In 2011 we were approached by Mrs P Campbell who, having purchased a studio flat in March in November 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar properties in March with a long lease were valued about £205,000. The average ground rent payable was £50 invoiced annually. The lease concluded on 28 August 2104. Taking into account 78 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.