Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Malden. Clearly, the period of lease remaining reduces over time. This is often overlooked and only becomes a problem when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Malden have the right to extend the lease for an additional ninety years in accordance with legislation. Do give due deliberation before delaying your Malden lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancing solicitors that we work with procure Malden 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.
During the course of the last few months Milo, came very near to the 80-year mark with the lease on his studio apartment in Malden. In buying his property twenty years previously, the unexpired term was of minimal importance. Thankfully, he realised he needed to take action soon on a lease extension. Milo extended the lease at the eleventh hour last April. Milo and the freeholder via the managing agents in the end agreed on sum of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,100.
Dr I Torres completed a studio flat in Malden in November 2004. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Malden with a long lease were valued around £254,200. The mid-range ground rent payable was £60 invoiced yearly. The lease came to a finish in 2076. Having 51 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Malden premises is 158 West Hill in November 2010. the Tribunal held that the premium to be paid for the freehold reversion should be £99,650 This case affected 7 flats. The unexpired term as at the valuation date was 75.88 years.