For those whose Maidstone home is held on a long lease, our message is clear – if nothing is done, your 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 obtain a lease extension.
Leasehold premises in Maidstone with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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; |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Maidstone leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her two bedroom flat in Maidstone, Bethany commenced the lease extension process as the eighty year threshold was quickly nearing. The transaction completed in September 2015. The freeholder’s costs were restricted to approximately four hundred pounds.
Mr B Ricardo completed a basement apartment in Maidstone in January 2011. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative properties in Maidstone with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 billed every twelve months. The lease elapsed in 2092. Given that there were 66 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
In 2014 we were e-mailed by Mr and Mrs. K Garcia who, having acquired a basement apartment in Maidstone in March 2007. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Maidstone with a long lease were valued around £275,000. The average amount of ground rent was £55 billed yearly. The lease concluded on 25 August 2103. Given that there were 77 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.