As the the remaining lease term of a Malmesbury residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 100 years to run then this decrease may be negligible that being said 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 termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Malmesbury will qualify for this right; that being said a conveyancer should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
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 further 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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. |
Using our service gives you increased control over the value of your Malmesbury leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her purpose-built apartment in Malmesbury, Maisie initiated the lease extension process just as the lease was nearing the crucial eighty-year deadline. The legal work completed in May 2013. The landlord’s charges were kept to an absolute minimum.
Ms H Moore bought a one bedroom flat in Malmesbury in September 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Malmesbury with a long lease were valued around £210,600. The average amount of ground rent was £45 billed every twelve months. The lease elapsed on 22 June 2087. Considering the 62 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including costs.
Ms L Norbert took over the lease of a first floor flat in Malmesbury in May 2009. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparative properties in Malmesbury with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease terminated in 2098. Given that there were 73 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.