When it comes to residential leasehold property in Maida Vale, you effectively rent it for a certain amount of time. Modern 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 lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Residents in Maida Vale with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below eighty years remaining, under the current statute the freeholder can calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Maida Vale leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ibrahim, came perilously near to the eighty-year threshold with the lease on his basement flat in Maida Vale. Having bought his home two decades ago, the lease term was of no significance. by good luck, he realised he needed to take action soon on Extending the lease. Ibrahim was able to extend his lease just in the nick of time last May. Ibrahim and the landlord ultimately agreed on a premium of £5,000 . If the lease had dipped to less than 80 years, the price would have escalated by at least £1,125.
Mrs Lydia Baker was assigned a lease of a ground floor apartment in Maida Vale in May 2003. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative homes in Maida Vale with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 collected yearly. The lease terminated in 2083. Considering the 57 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus professional charges.
An example of a Freehold Enfranchisement decision for a Maida Vale residence 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 term as at the valuation date was 70.02 years.