For those whose Maltby property is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Maltby,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maltby valuers.
Lewis was the the leasehold proprietor of a studio flat in Maltby being sold with a lease of a little over sixty years left. Lewis informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2010 we were approached by Dr W Lambert who, having completed a first floor flat in Maltby in October 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Similar homes in Maltby with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 billed per annum. The lease ended in 2100. Taking into account 75 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Last month we were approach by Dr G Norbert , who moved into a purpose-built flat in Maltby in March 1997. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Identical flats in Maltby with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2089. Considering the 64 years left we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.