Chances are that if you own a flat in Maldon you actually own a long leasehold interest over your property
Leasehold premises in Maldon with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by 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; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 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.
After protracted negotiations with the freeholder of her ground floor apartment in Maldon, Samantha initiated the lease extension process just as her lease was nearing the critical eighty-year mark. The transaction completed in November 2013. The freeholder’s costs were kept to an absolute minimum.
Last month we were phoned by Mr Tyler Martin , who moved into a one bedroom apartment in Maldon in June 2004. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar properties in Maldon with a long lease were valued around £225,400. The average amount of ground rent was £45 collected every twelve months. The lease concluded in 2090. Considering the 64 years outstanding we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 plus expenses.
In 2009 we were approached by Ms Niamh Sharif who, having owned a purpose-built flat in Maldon in January 2009. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative properties in Maldon with a long lease were worth £270,000. The average ground rent payable was £55 collected yearly. The lease came to a finish in 2101. Having 75 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.