Maldon residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
Leasehold properties in Maldon with over one hundred years remaining on the lease are often referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 lawyer we work with provide it.
Kyle owned a conversion apartment in Maldon being sold with a lease of a few days over 59 years left. Kyle on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and secured an acceptable resolution informally and sell the flat.
Last Spring we were e-mailed by Mr Y Moreau , who was assigned a lease of a one bedroom apartment in Maldon in March 1997. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Maldon with a long lease were valued around £260,000. The mid-range ground rent payable was £50 collected annually. The lease ended in 2098. Having 72 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Dr I Harris bought a garden flat in Maldon in August 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Maldon with a long lease were in the region of £261,600. The average amount of ground rent was £60 invoiced quarterly. The lease concluded in 2078. Given that there were 52 years outstanding we calculated the premium to the landlord to extend the lease to be between £39,000 and £45,000 plus legals.