On the balance of probabilities if you own a flat in Maidstone you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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 conveyancer we work with provide it.
Benjamin was the the leasehold owner of a studio apartment in Maidstone being marketed with a lease of fraction over 59 years outstanding. Benjamin on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2009 we were contacted by Mr Jonathan Green who, having was assigned a lease of a newly refurbished apartment in Maidstone in June 2006. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparable residencies in Maidstone with 100 year plus lease were in the region of £220,400. The mid-range ground rent payable was £45 billed annually. The lease elapsed on 15 March 2089. Considering the 64 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus professional charges.
Last Spring we were phoned by Mr and Mrs. O Young , who was assigned a lease of a studio apartment in Maidstone in March 1997. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Maidstone with a long lease were worth £270,000. The mid-range ground rent payable was £55 billed yearly. The lease elapsed in 2100. Taking into account 75 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.