With a long leasehold premises in Maulden, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in Maulden with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has below eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Maulden,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Maulden valuers.
Eli owned a studio flat in Maulden on the market with a lease of fraction over 61 years unexpired. Eli informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Eli to invoke his statutory right. Eli obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Spring we were approach by Dr L Bennett , who acquired a garden flat in Maulden in July 1997. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Identical flats in Maulden with a long lease were valued around £243,000. The mid-range ground rent payable was £65 invoiced yearly. The lease elapsed in 2088. Considering the 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.
In 2014 we were contacted by Mrs K Murphy who, having acquired a first floor apartment in Maulden in November 2006. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Maulden with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 billed monthly. The lease ended on 21 June 2077. Considering the 52 years outstanding we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of costs.