Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Malden Rushett. Clearly, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Malden Rushett have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give due attention before putting off your Malden Rushett lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in Malden Rushett with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
The conveyancers 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 conveyancing solicitor we work with provide it.
Kai was the the leasehold proprietor of a high value flat in Malden Rushett on the market with a lease of a little over 59 years unexpired. Kai on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Last Winter we were phoned by Ms Francesca Ali , who bought a one bedroom apartment in Malden Rushett in March 2012. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Malden Rushett with an extended lease were valued around £243,000. The mid-range amount of ground rent was £65 billed yearly. The lease expired in 2088. Taking into account 63 years outstanding we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.
An example of a Lease Extension case for a Malden Rushett premises 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.