On the balance of probabilities if you own a flat in Maldon you actually own a long leasehold interest over your property
Leasehold properties in Maldon with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Maldon,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maldon valuers.
Jasper owned a high value flat in Maldon being marketed with a lease of a few days over 72 years unexpired. Jasper informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2014 we were phoned by Dr Madeleine Howard who, having bought a studio flat in Maldon in May 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Maldon with an extended lease were valued around £210,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease elapsed in 2088. Considering the 62 years unexpired we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.
Mr and Mrs. D Adams moved into a purpose-built flat in Maldon in August 1996. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparative premises in Maldon with an extended lease were valued around £265,000. The mid-range ground rent payable was £50 billed every twelve months. The lease end date was on 21 July 2099. Considering the 73 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.