It’s a harsh truth that a Maulden residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Maulden property market.Where your lease has approximately ninety years left, you should 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 dips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Maulden will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Using our service gives you enhanced control over the value of your Maulden leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
William owned a high value apartment in Maulden being sold with a lease of fraction over 61 years remaining. William informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were William to invoke his statutory right. William obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Autumn we were called by Dr Elijah Bernard , who bought a first floor apartment in Maulden in January 2007. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable flats in Maulden with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 invoiced per annum. The lease finished in 2103. Having 78 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.
Mr and Mrs. U Dupont bought a one bedroom flat in Maulden in June 2003. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar residencies in Maulden with a long lease were in the region of £267,600. The average amount of ground rent was £65 billed annually. The lease lapsed in 2092. Considering the 67 years remaining we calculated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus fees.