Chances are that where you own a flat in Maldon you actually own a long leasehold interest over your property
Leasehold premises in Maldon with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Maldon,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maldon valuers.
14 months ago Hunter, came precariously near to the eighty-year mark with the lease on his ground floor apartment in Maldon. Having bought his home 19 years ago, the lease term was of minimal relevance. by good luck, he became aware that he would imminently be paying an inflated amount for a lease extension. Hunter arranged for a lease extension just under the wire last September. Hunter and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the price would have escalated by a minimum £925.
Mr and Mrs. C Wilson purchased a newly refurbished apartment in Maldon in June 2010. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable premises in Maldon with an extended lease were in the region of £193,400. The average amount of ground rent was £65 invoiced every twelve months. The lease ended on 5 November 2084. Having 59 years left we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.
Last Summer we were called by Mr G Turner , who owned a basement flat in Maldon in May 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative homes in Maldon with an extended lease were valued around £255,000. The average amount of ground rent was £50 billed quarterly. The lease expired in 2095. Taking into account 70 years unexpired we estimated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 not including fees.