Maida Vale leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Maida Vale enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Maida Vale you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Maida Vale with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Maida Vale,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maida Vale valuers.
Aaron owned a studio flat in Maida Vale being marketed with a lease of just over 59 years left. Aaron informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last September we were contacted by Mr U Scott , who owned a studio apartment in Maida Vale in May 2006. The question was if we could estimate the premium would be for a ninety year lease extension. Similar premises in Maida Vale with a long lease were worth £270,000. The mid-range ground rent payable was £65 billed annually. The lease expired on 15 November 2094. Considering the 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
An example of a Freehold Enfranchisement decision for a Maida Vale premises is 4 & 4A Charteris Road in June 2009. the Tribunal held that the price to be paid for the enfranchisement of 4/4a Charteris Road to be £15,510 for at 4and £15,694 for at 4a This case was in relation to 2 flats. The unexpired lease term was 70.02 years.