There is no doubt about it a leasehold flat or house in Maldon is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Maldon will meet the qualifying criteria; however a lawyer should be able to advise whether you are eligible 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.
Leasehold properties in Maldon with more than 100 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Maldon,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maldon valuers.
Austin was the the leasehold proprietor of a studio flat in Maldon being marketed with a lease of a few days over 61 years remaining. Austin informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Austin to exercise his statutory right. Austin obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Winter we were approach by Mr H Lewis , who bought a garden flat in Maldon in April 1995. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable properties in Maldon with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease end date was in 2105. Considering the 79 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
In 2014 we were phoned by Mrs Hollie Nelson who, having completed a one bedroom apartment in Maldon in April 2006. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Maldon with an extended lease were valued around £193,400. The average ground rent payable was £65 invoiced quarterly. The lease ended on 12 May 2085. Considering the 59 years left we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.