March leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most March tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in March you really ought to see if your lease has between seventy and ninety years remaining. There are compelling reasons why a March leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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. |
Lease extensions in March can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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.
In 2014 Eli, came critically near to the 80-year mark with the lease on his first floor flat in March. Having purchased his flat two decades ago, the lease term was of no concern. by good luck, he became aware that he needed to take steps soon on Extending the lease. Eli arranged for a lease extension just under the wire in January. Eli and the freeholder via the managing agents eventually settled on an amount of £5,500 . If the lease had descended below 80 years, the figure would have escalated by at least £1,150.
Ms R Walker moved into a one bedroom flat in March in August 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Identical properties in March with a long lease were worth £189,000. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded on 11 November 2079. Taking into account 53 years outstanding we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.
In 2013 we were called by Mr and Mrs. O Petit who, having was assigned a lease of a ground floor apartment in March in April 2002. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative properties in March with an extended lease were worth £290,000. The average ground rent payable was £45 billed yearly. The lease ended on 18 January 2099. Considering the 73 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.