Maltby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Maltby residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Maltby you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Maltby with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Maltby can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 a wealth of experience procuring Maltby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the freeholder of her ground floor apartment in Maltby, Victoria commenced the lease extension process just as the lease was coming close to the all-important 80-year threshold. The lease extension completed in March 2006. The freeholder’s charges were kept to an absolute minimum.
Mr I Campbell acquired a one bedroom apartment in Maltby in November 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable flats in Maltby with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed in 2106. Considering the 80 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
Dr L Lee purchased a studio apartment in Maltby in April 2009. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative premises in Maltby with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ended on 5 September 2095. Considering the 69 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.