It’s an underpublicised certainty that a Maldon residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Maldon property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Maldon will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Maldon with more than one hundred years left on the lease are sometimes 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 reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Maldon can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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.
Last Autumn Jack, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Maldon. In buying his flat twenty years previously, the unexpired term was of no relevance. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Jack extended the lease just under the wire last April. Jack and the freeholder via the management company subsequently settled on a premium of £5,000 . If he failed to meet the deadline, the figure would have escalated by at least £975.
Last Winter we were phoned by Mr Teddy Collins , who completed a one bedroom flat in Maldon in April 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in Maldon with a long lease were valued about £265,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed in 2098. Having 73 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2014 we were contacted by Mr and Mrs. O Garcia who, having bought a one bedroom apartment in Maldon in July 2008. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical residencies in Maldon with 100 year plus lease were worth £264,000. The average ground rent payable was £60 collected per annum. The lease expired on 11 May 2078. Taking into account 53 years left we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus fees.