Maldon leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher amount will be payable. Leasehold owners in Maldon will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Maldon 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.
Ali was the the leasehold owner of a 2 bedroom apartment in Maldon being sold with a lease of a few days over 59 years outstanding. Ali on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last May we were e-mailed by Mr Charlie Simon , who completed a garden flat in Maldon in September 2010. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical homes in Maldon with 100 year plus lease were valued about £245,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease concluded on 23 July 2094. Having 68 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Mr and Mrs. F Gómez purchased a garden apartment in Maldon in June 1996. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable homes in Maldon with a long lease were worth £285,000. The average amount of ground rent was £55 collected yearly. The lease elapsed in 2105. Given that there were 79 years left we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.