Maldon leases on residential deteriorating in value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease falls lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Maldon will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not qualify. There are prescribed timetables and formalities to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Maldon with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Maldon,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maldon valuers.
Max was the the leasehold proprietor of a 2 bedroom flat in Maldon on the market with a lease of fraction over fifty eight years left. Max on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were contacted by Dr P Norbert who, having purchased a purpose-built flat in Maldon in May 2000. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable properties in Maldon with a long lease were valued about £200,800. The mid-range ground rent payable was £65 collected monthly. The lease ran out on 6 August 2086. Having 60 years left we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including legals.
Ms T Morgan acquired a one bedroom flat in Maldon in May 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Similar homes in Maldon with a long lease were worth £255,000. The average amount of ground rent was £50 collected yearly. The lease expired on 20 July 2097. Given that there were 71 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.