Unfortunately that a Maulden residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Maulden property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term slips under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Maulden will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether 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 has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Maulden with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Maulden 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.
Kyle was the the leasehold owner of a studio apartment in Maulden on the market with a lease of a little over sixty years remaining. Kyle informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.
In 2009 we were called by Mr and Mrs. F Gómez who, having took over the lease of a first floor apartment in Maulden in February 2011. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative properties in Maulden with an extended lease were valued around £260,200. The mid-range ground rent payable was £65 collected annually. The lease terminated in 2090. Considering the 66 years as a residual term we approximated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus fees.
In 2010 we were e-mailed by Mr and Mrs. M Richardson who, having acquired a one bedroom flat in Maulden in September 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Maulden with a long lease were worth £198,800. The mid-range ground rent payable was £55 billed monthly. The lease expired on 25 July 2079. Given that there were 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including fees.