When it comes to long leasehold premises in Malmesbury, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years left. Anyone in Malmesbury with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has less than eighty years left, under the current statute the freeholder is entitled to calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Yorkshire 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. |
Lease extensions in Malmesbury can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience procuring Malmesbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin was the the leasehold owner of a 2 bedroom flat in Malmesbury on the market with a lease of a few days over 61 years outstanding. Benjamin on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder 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 £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Mr T Hernández acquired a studio apartment in Malmesbury in March 1999. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparative properties in Malmesbury with an extended lease were valued about £246,800. The average amount of ground rent was £60 invoiced per annum. The lease lapsed in 2075. Taking into account 50 years remaining we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of fees.
In 2011 we were approached by Ms Sophia Fournier who, having moved into a first floor apartment in Malmesbury in September 2011. We are asked if we could estimate the price could be to extend the lease by ninety years. Similar homes in Malmesbury with a long lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease elapsed in 2086. Taking into account 61 years remaining we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus expenses.