Marshalls Park leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Marshalls Park residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Marshalls Park you really ought to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Marshalls Park leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Marshalls Park with more than one hundred years outstanding on the lease are sometimes referred to as ‘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 buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you better control over the value of your Marshalls Park leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her first floor flat in Marshalls Park, Yasmin started the lease extension process just as her lease was coming close to the crucial 80-year threshold. The transaction completed in January 2010. The landlord’s fees were negotiated to below 650 pounds.
Dr Harvey David bought a garden apartment in Marshalls Park in May 2002. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable flats in Marshalls Park with a long lease were worth £248,000. The average ground rent payable was £65 collected per annum. The lease concluded on 27 June 2088. Having 63 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of legals.
In 2009 we were phoned by Dr Amy Reed who, having purchased a basement apartment in Marshalls Park in January 2008. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Identical properties in Marshalls Park with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 billed quarterly. The lease expired on 1 September 2077. Given that there were 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus fees.