Main reasons to commence your Maldon lease extension

Top reasons for lease extension now:

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

Maldon leases on residential properties are gradually decreasing 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. Legislation has been in place for sometime now which entitles qualifying Maldon residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Maldon you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Maldon with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may decide not to grant a mortgage with a short lease

Mortgage lenders have specific criteria when loaning monies charged on leasehold property. Some will simply not lend at all once the remaining lease term falls under a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below seventy years as acceptable security. As well as this being important when selling, it is also relevant if you are wanting to remortgage your Maldon home.

Why use us for your lease extension in Maldon?

Irrespective of whether you are a tenant or a freeholder in Maldon,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maldon valuers.

Maldon Lease Extension Case Summaries:

Jodie, Maldon, Essex,

Following lengthy correspondence with the freeholder of her garden apartment in Maldon, Jodie started the lease extension process as the eighty year threshold was quickly advancing. The legal work was finalised in February 2012. The landlord’s fees were kept to an absolute minimum.

Maldon case:

Dr R Roux bought a garden apartment in Maldon in June 1995. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative residencies in Maldon with 100 year plus lease were worth £173,800. The average amount of ground rent was £60 collected per annum. The lease expiry date was on 26 July 2081. Considering the 55 years remaining we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.

Maldon case:

In 2014 we were phoned by Mr Jonathan Watson who, having moved into a one bedroom apartment in Maldon in April 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical premises in Maldon with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed yearly. The lease elapsed on 3 February 2092. Considering the 66 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.