It’s a harsh certainty that a Marple residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Marple property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Most flat owners in Marple will be able to extend under the legislation; however a conveyancer 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 is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Marple lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After unsuccessful negotiations with the landlord of her ground floor flat in Marple, Stephanie started the lease extension process just as the lease was coming close to the critical eighty-year mark. The lease extension was concluded in June 2012. The freeholder’s charges were negotiated to below 500 GBP.
Last January we were phoned by Mr and Mrs. I Johnson , who purchased a studio flat in Marple in January 2005. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Marple with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 collected per annum. The lease terminated on 22 November 2085. Having 60 years left we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including professional charges.
Last August we were approach by Mr M François , who completed a recently refurbished apartment in Marple in July 2004. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Identical properties in Marple with an extended lease were worth £260,000. The mid-range ground rent payable was £50 invoiced yearly. The lease lapsed on 8 November 2096. Considering the 71 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.