The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Maldon have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Maldon lease extension. Postponing the costs today simply increases the amount you will ultimately be required to pay for a lease extension.
Leasehold properties in Maldon with over 100 years remaining on the lease are often 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 freehold unless savings on ground rent and estate charges warrant 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord 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 in-depth market knowledge and the close ties they enjoy with Maldon valuers.
Connor owned a studio flat in Maldon on the market with a lease of a few days over 72 years remaining. Connor on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Last year we were called by Ms O Anderson , who moved into a first floor apartment in Maldon in April 2007. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable flats in Maldon with an extended lease were valued around £193,400. The mid-range amount of ground rent was £65 billed monthly. The lease termination date was on 4 March 2085. Given that there were 59 years left we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including fees.
Mr and Mrs. K Moore completed a recently refurbished apartment in Maldon in April 1997. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Maldon with an extended lease were valued around £255,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed in 2096. Having 70 years left we estimated the premium to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of costs.