Maldon leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease dips below 80 years - otherwise a higher amount will be payable. Flat owners in Maldon will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Maldon,the lease extension experts 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.
Off the back of lengthy discussions with the freeholder of her first floor flat in Maldon, Naomi initiated the lease extension process just as the lease was nearing the crucial eighty-year mark. The lease extension was finalised in November 2014. The freeholder’s costs were restricted to about four hundred GBP.
Mr and Mrs. R Morel bought a basement flat in Maldon in October 1998. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable residencies in Maldon with a long lease were valued around £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease ran out in 2101. Taking into account 75 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2012 we were approached by Dr Tyler Martin who, having completed a newly refurbished apartment in Maldon in June 2001. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative homes in Maldon with a long lease were worth £173,800. The average ground rent payable was £60 invoiced monthly. The lease ended on 22 September 2081. Having 55 years left we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.