For anyone whose Maldon flat is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Maldon can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Maldon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Tyler, came very near to the eighty-year mark with the lease on his two bedroom apartment in Maldon. In buying his home 19 years ago, the lease term was of little bearing. As luck would have it, he realised he needed to take steps soon on a lease extension. Tyler was able to extend his lease just in the nick of time in May. Tyler and the landlord who owned the flat above eventually settled on sum of £6,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £950.
Last June we were phoned by Mr and Mrs. G González , who bought a recently refurbished flat in Maldon in November 1996. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative residencies in Maldon with an extended lease were in the region of £261,600. The mid-range ground rent payable was £60 billed quarterly. The lease elapsed in 2078. Having 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of professional charges.
In 2011 we were contacted by Mr and Mrs. T Gómez who, having was assigned a lease of a studio flat in Maldon in March 2011. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative homes in Maldon with an extended lease were valued about £218,000. The average ground rent payable was £45 collected per annum. The lease came to a finish in 2089. Taking into account 63 years unexpired we estimated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus costs.