As the the remaining lease term of a Malden Rushett domestic lease diminished so does its value and therefore the value of your property. If the lease has, more than 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Malden Rushett will qualify for this right; that being said a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Malden Rushett with in excess of one hundred years left on the lease are sometimes 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 |
|---|---|
| Bank of Scotland | 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. |
| 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 |
The lawyers that we work with handle Malden Rushett 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.
Last October Ali, came critically close to the 80-year threshold with the lease on his basement apartment in Malden Rushett. In buying his property 18 years ago, the unexpired term was of no significance. Thankfully, he noticed he needed to take action soon on Extending the lease. Ali arranged for a lease extension at the eleventh hour last July. Ali and the freeholder via the management company in the end agreed on the final figure of £6,000 . If the lease had dipped to less than 80 years, the premium would have gone up by a minimum £950.
In 2012 we were called by Mrs Nicole Martinez who, having bought a one bedroom apartment in Malden Rushett in March 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparable residencies in Malden Rushett with a long lease were worth £210,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed in 2105. Considering the 80 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
An example of a Lease Extension case for a Malden Rushett property is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.