Unfortunately that a Maida Vale residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Maida Vale property market.Once your lease nears 85ish years, you should start considering 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 amount will be payable. Most leasehold owners in Maida Vale will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | 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 |
| 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. |
Irrespective of whether you are a tenant or a landlord in Maida Vale,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maida Vale valuers.
In the wake of eight months of unsuccessful correspondence with the freeholder of her purpose-built apartment in Maida Vale, Paige commenced the lease extension process as the 80 year deadline was fast approaching. The lease extension completed in January 2007. The freeholder’s costs were negotiated to about four hundred GBP.
Last month we were contacted by Dr W Nguyen , who took over the lease of a one bedroom apartment in Maida Vale in September 2006. The question was if we could approximate the premium could be to extend the lease by 90 years. Identical premises in Maida Vale with a long lease were worth £230,800. The mid-range amount of ground rent was £60 billed quarterly. The lease lapsed in 2085. Considering the 60 years unexpired we approximated the premium to the landlord for the lease extension to be between £24,700 and £28,600 not including legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Maida Vale property 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 related to 2 flats. The remaining number of years on the lease was 70.02 years.