It’s a harsh truth that a Marks Gate residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Marks Gate property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term drops below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Marks Gate will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Marks Gate with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 landlord in Marks Gate,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Marks Gate valuers.
Two years ago Lucas, started to get close to the eighty-year mark with the lease on his two bedroom flat in Marks Gate. Having purchased his flat two decades ago, the unexpired term was of no importance. Fortunately, he realised he needed to take steps soon on Extending the lease. Lucas extended the lease just under the wire in March. Lucas and the freeholder via the management company eventually agreed on the final figure of £6,000 . If he not met the deadline, the amount would have gone up by at least £875.
Last Winter we were approach by Mr and Mrs. E Collins , who took over the lease of a one bedroom flat in Marks Gate in January 1999. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical homes in Marks Gate with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 invoiced quarterly. The lease concluded in 2094. Given that there were 69 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.
An example of a Lease Extension case for a Marks Gate property is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case affected 1 flat. The unexpired term was 61.36 years.