As the the remaining lease term of a Malpas residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Malpas will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Malpas can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 a wealth of experience procuring Malpas lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason was the the leasehold owner of a studio apartment in Malpas on the market with a lease of a few days over fifty eight years left. Mason informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Mason to exercise his statutory right. Mason obtained expert advice and secured satisfactory deal informally and sell the flat.
Mr and Mrs. H Allen completed a one bedroom flat in Malpas in October 2000. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Malpas with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 collected annually. The lease concluded on 1 November 2099. Taking into account 75 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last Winter we were e-mailed by Mr and Mrs. E González , who moved into a first floor flat in Malpas in November 2012. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Malpas with 100 year plus lease were worth £173,800. The average amount of ground rent was £60 billed every twelve months. The lease finished on 15 April 2079. Considering the 55 years remaining we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus costs.