Unfortunately that a Maulden residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Maulden property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Maulden will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Maulden leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Zachary, came seriously close to the 80-year threshold with the lease on his leasehold apartment in Maulden. Having bought his home two decades ago, the unexpired term was of minimal relevance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Zachary was able to extend his lease at the eleventh hour in August. Zachary and the freeholder via the managing agents ultimately settled on the final figure of £5,000 . If he not met the deadline, the sum would have escalated by at least £1,000.
Last Autumn we were phoned by Ms Shannon Hall , who took over the lease of a ground floor apartment in Maulden in June 2010. We are asked if we could approximate the price would be to prolong the lease by 90 years. Identical premises in Maulden with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 billed every twelve months. The lease concluded on 22 May 2092. Considering the 67 years remaining we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including professional charges.
Last Christmas we were called by Mr and Mrs. R Lambert , who acquired a basement apartment in Maulden in January 2011. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable homes in Maulden with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £55 collected yearly. The lease ended in 2081. Having 56 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.