When it comes to domestic leasehold property in Malden Rushett, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Residents in Malden Rushett with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has under eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Malden Rushett with in excess of 100 years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 procure 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 lawyer we work with provide it.
Subsequent to protracted negotiations with the landlord of her two bedroom apartment in Malden Rushett, Chelsea started the lease extension process just as her lease was coming close to the critical 80-year deadline. The lease extension was finalised in January 2012. The freeholder’s fees were negotiated to below 450 pounds.
Mr and Mrs. V Bennett acquired a garden flat in Malden Rushett in April 2000. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparative properties in Malden Rushett with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 billed annually. The lease ran out in 2097. Having 71 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
An example of a Lease Extension decision 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 related to 1 flat.