The closer a domestic lease in Maldon nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 100 years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Maldon will qualify for this right; nevertheless a conveyancing solicitor can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord 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 in-depth market knowledge and the close ties they enjoy with Maldon valuers.
18 months ago Jake, came seriously close to the 80-year mark with the lease on his first floor apartment in Maldon. In buying his property two decades ago, the length of the lease was of little importance. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. Jake extended the lease just in the nick of time last September. Jake and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had dipped to less than eighty years, the premium would have increased by at least £900.
Last February we were phoned by Mr and Mrs. K Davies , who owned a one bedroom flat in Maldon in July 2003. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar properties in Maldon with 100 year plus lease were valued about £255,000. The average amount of ground rent was £50 collected annually. The lease ran out on 8 June 2097. Taking into account 71 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
In 2013 we were contacted by Mr Jamie Mitchell who, having moved into a first floor flat in Maldon in March 1995. The question was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparable homes in Maldon with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ended on 14 October 2077. Having 51 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including legals.