Maldon leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Maldon will usually qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Maldon can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Maldon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Toby, came precariously close to the eighty-year threshold with the lease on his ground floor flat in Maldon. In buying his home 19 years previously, the length of the lease was of minimal interest. by good luck, he recognised he needed to take steps soon on a lease extension. Toby arranged for a lease extension just under the wire last March. Toby and the landlord eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the amount would have gone up by a minimum £925.
Last Winter we were called by Ms Lily Brooks , who was assigned a lease of a one bedroom apartment in Maldon in May 1999. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative properties in Maldon with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected per annum. The lease lapsed on 22 March 2075. Given that there were 50 years remaining we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including legals.
In 2013 we were contacted by Mr David Brown who, having moved into a one bedroom flat in Maldon in April 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Maldon with 100 year plus lease were worth £208,200. The mid-range ground rent payable was £65 billed per annum. The lease elapsed on 16 September 2086. Taking into account 61 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus fees.