As the the remaining lease term of a Maidenbower residential lease lessens so does its value and therefore the value of your property. If the lease has, over 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Maidenbower will qualify for this right; that being said a conveyancer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Maidenbower with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Maidenbower can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Maidenbower lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry was the the leasehold proprietor of a studio flat in Maidenbower on the market with a lease of a little over fifty eight years left. Harry on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Harry to exercise his statutory right. Harry obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2012 we were phoned by Mr and Mrs. T Bennett who, having owned a purpose-built apartment in Maidenbower in May 2003. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Maidenbower with an extended lease were valued around £206,200. The average ground rent payable was £55 collected quarterly. The lease ran out on 15 August 2082. Having 56 years left we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.
Mr and Mrs. P Vincent took over the lease of a basement apartment in Maidenbower in September 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Maidenbower with an extended lease were in the region of £300,000. The average amount of ground rent was £50 collected annually. The lease came to a finish on 26 November 2102. Taking into account 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.