For anyone whose Maidstone home is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold premises in Maidstone with over one hundred years remaining 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Maidstone lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Dylan, came perilously close to the eighty-year threshold with the lease on his one bedroom apartment in Maidstone. Having bought his property two decades ago, the unexpired term was of no importance. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Dylan arranged for a lease extension just under the wire in August. Dylan and the freeholder ultimately agreed on a premium of £6,000 . If he had missed the deadline, the premium would have escalated by a minimum £925.
In 2014 we were e-mailed by Mr D Nelson who, having purchased a one bedroom flat in Maidstone in April 2011. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Maidstone with a long lease were in the region of £255,000. The average ground rent payable was £50 collected yearly. The lease ran out in 2096. Given that there were 71 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
In 2009 we were e-mailed by Ms Victoria Bell who, having owned a studio flat in Maidstone in February 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative flats in Maidstone with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 invoiced monthly. The lease expired in 2076. Having 51 years remaining we estimated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 not including fees.