On the balance of probabilities where you own a flat in Maldon you actually own a long leasehold interest over your property
Leasehold residencies in Maldon with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with undertake Maldon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After unsuccessful negotiations with the freeholder of her leasehold apartment in Maldon, Kirsty started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension completed in March 2015. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were contacted by Mr O González who, having completed a garden apartment in Maldon in May 2002. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical properties in Maldon with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 collected quarterly. The lease ended on 26 February 2085. Taking into account 61 years outstanding we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of costs.
Mr and Mrs. N Ramírez acquired a one bedroom apartment in Maldon in October 1995. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical homes in Maldon with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced yearly. The lease came to a finish on 6 February 2096. Given that there were 72 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.