March leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher premium will be due. Leasehold owners in March will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in March with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| Virgin |
Using our service will provide you better control over the value of your March leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Cameron, came critically near to the 80-year mark with the lease on his two bedroom apartment in March. In buying his flat two decades ago, the length of the lease was of no significance. Thankfully, he noticed he needed to take action soon on Extending the lease. Cameron extended the lease at the eleventh hour in August. Cameron and the landlord who owned the flat above in the end settled on an amount of £5,000 . If he not met the deadline, the sum would have gone up by at least £1,125.
Mr and Mrs. H Moore took over the lease of a ground floor flat in March in June 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical residencies in March with a long lease were valued about £260,200. The mid-range ground rent payable was £65 billed quarterly. The lease ran out in 2092. Given that there were 66 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including expenses.
In 2014 we were called by Mr and Mrs. O Murphy who, having was assigned a lease of a purpose-built flat in March in October 2006. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparable flats in March with an extended lease were valued about £198,800. The average ground rent payable was £55 billed every twelve months. The lease lapsed on 21 March 2081. Having 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.