Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Maidenbower. Clearly, the term of lease left shortens over time. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Maidenbower have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give due consideration before delaying your Maidenbower lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold properties in Maidenbower with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Chelsea 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. |
| 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 |
| 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. |
Lease extensions in Maidenbower can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 procuring Maidenbower lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Sam, started to get near to the 80-year mark with the lease on his one bedroom apartment in Maidenbower. Having purchased his home two decades ago, the lease term was of no interest. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Sam arranged for a lease extension at the eleventh hour in January. Sam and the landlord subsequently agreed on sum of £5,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £925.
In 2014 we were phoned by Mr and Mrs. T Robinson who, having took over the lease of a garden apartment in Maidenbower in May 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Maidenbower with 100 year plus lease were in the region of £295,000. The average ground rent payable was £50 collected yearly. The lease elapsed on 19 January 2100. Having 75 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
In 2012 we were approached by Mr and Mrs. R Fournier who, having completed a ground floor apartment in Maidenbower in January 2010. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar premises in Maidenbower with an extended lease were in the region of £250,400. The average amount of ground rent was £65 invoiced per annum. The lease concluded on 17 January 2089. Having 64 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus professional charges.