Top reasons for Maltby lease extension

Top reasons for lease extension now:

A Maltby leasehold property depreciates with the years remaining on the lease.

The market value of Maltby leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to issue a mortgage with a short lease

The propensity since 2008 has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Maltby lease extension solicitors or enfranchisement solicitors

Lease extensions in Maltby can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.

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 dealing with Maltby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Maltby Lease Extension Case Summaries:

Dexter, Maltby, South Yorkshire

Last year Dexter, came seriously near to the 80-year mark with the lease on his studio apartment in Maltby. In buying his flat 18 years ago, the length of the lease was of no significance. Thankfully, he noticed he needed to take steps soon on a lease extension. Dexter extended the lease at the eleventh hour last May. Dexter and the freeholder subsequently agreed on sum of £6,000 . If the lease had dropped to less than eighty years, the amount would have escalated by at least £850.

Maltby case:

In 2009 we were approached by Dr Sebastian Norbert who, having completed a one bedroom apartment in Maltby in July 2011. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Maltby with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 19 October 2094. Having 68 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.

Maltby case:

Mr and Mrs. H Alexander acquired a first floor apartment in Maltby in January 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical flats in Maltby with a long lease were worth £208,600. The mid-range amount of ground rent was £60 collected monthly. The lease came to a finish in 2083. Given that there were 57 years left we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including professional charges.