Top reasons for Maldon lease extension

Top reasons for lease extension now:

A Maldon leasehold property depreciates with the years remaining on the lease.

The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Maldon have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Maldon lease extension. Postponing the costs today simply increases the amount you will ultimately be required to pay for a lease extension.

Maldon property with a lease extension is almost the same value as a freehold

Leasehold properties in Maldon with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not finance a property with a short lease

Most banks and building societies require a lengthy amount of time remaining on a leasehold property before they will contemplate providing a mortgage on it. Regardless of whether you need a mortgage, you should be conscious that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so if they are not able to secure a mortgage, then the market price of the property will likely suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are willing to accept

Get in touch with one of our Maldon lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Maldon,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Maldon valuers.

Maldon Lease Extension Example Cases:

Connor, Maldon, Essex,

Connor owned a studio flat in Maldon on the market with a lease of a few days over 72 years remaining. Connor on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder 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 per annum. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert legal guidance and secured an acceptable deal informally and readily saleable.

Maldon case:

Last year we were called by Ms O Anderson , who moved into a first floor apartment in Maldon in April 2010. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable flats in Maldon with an extended lease were valued around £193,400. The mid-range amount of ground rent was £65 billed monthly. The lease termination date was on 4 March 2085. Given that there were 59 years left we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including fees.

Maldon case:

Mr and Mrs. K Moore completed a recently refurbished apartment in Maldon in April 1997. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Maldon with an extended lease were valued around £255,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed in 2096. Having 70 years left we estimated the premium to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of costs.