Maldon leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Maldon tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Maldon you must investigate if your lease has between seventy and 90 years left. There are good reasons why a Maldon leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Maldon can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Maldon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her purpose-built apartment in Maldon, Eleanor started the lease extension process as the 80 year deadline was quickly nearing. The transaction was finalised in September 2008. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. V Davis who, having was assigned a lease of a basement apartment in Maldon in June 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Maldon with an extended lease were worth £218,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out in 2089. Considering the 63 years left we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 plus expenses.
Mr and Mrs. S Lee moved into a studio flat in Maldon in July 2003. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative homes in Maldon with a long lease were valued around £265,000. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed on 17 March 2100. Having 74 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.