Chances are that where you own a flat in Malpas you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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; |
| 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. |
| 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 |
| 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. |
Engaging our service gives you enhanced control over the value of your Malpas leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her studio flat in Malpas, Katie started the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction was concluded in October 2011. The landlord’s costs were restricted to less than 550 GBP.
Last Spring we were contacted by Dr Logan Sánchez , who moved into a purpose-built flat in Malpas in October 2000. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar properties in Malpas with a long lease were valued around £183,600. The average ground rent payable was £65 billed monthly. The lease ran out on 5 October 2083. Considering the 57 years left we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including professional charges.
Ms G Fournier was assigned a lease of a garden flat in Malpas in November 2010. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative properties in Malpas with a long lease were worth £245,000. The average ground rent payable was £50 collected per annum. The lease end date was in 2094. Taking into account 68 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.