Maldon leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Maldon enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Maldon you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Maldon leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the freeholder of her leasehold apartment in Maldon, Poppy commenced the lease extension process just as her lease was coming close to the crucial eighty-year mark. The lease extension was concluded in April 2006. The landlord’s costs were kept to an absolute minimum.
Dr Molly Carter completed a purpose-built apartment in Maldon in February 1999. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Identical premises in Maldon with a long lease were in the region of £290,000. The average amount of ground rent was £60 collected yearly. The lease elapsed on 24 March 2105. Having 80 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
Dr H Moore was assigned a lease of a one bedroom apartment in Maldon in November 2012. The question was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar premises in Maldon with an extended lease were valued about £200,800. The average amount of ground rent was £65 collected yearly. The lease ran out in 2085. Having 60 years outstanding we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus professional charges.