Malden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Malden enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Malden you would be well advised to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Malden flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 lawyers that we work with undertake 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 conveyancer we work with provide it.
Last October Jackson, came dangerously near to the 80-year mark with the lease on his studio apartment in Malden. In buying his property 18 years ago, the unexpired term was of minimal relevance. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Jackson was able to extend his lease at the eleventh hour last April. Jackson and the freeholder in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have gone up by at least £1,000.
Last Spring we were contacted by Mr and Mrs. M Ramírez , who acquired a one bedroom apartment in Malden in November 1997. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Similar properties in Malden with an extended lease were worth £186,000. The mid-range ground rent payable was £65 invoiced annually. The lease ended on 4 October 2083. Considering the 58 years unexpired we approximated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus expenses.
An example of a Freehold Enfranchisement decision for a Malden property 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 number of years remaining on the existing lease(s) was 75.88 years.