Maltby residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold properties in Maltby with in excess of one hundred years left 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 purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Maltby,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Maltby valuers.
Callum owned a studio apartment in Maltby being marketed with a lease of a few days over 61 years outstanding. Callum informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of 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 Callum to invoke his statutory right. Callum obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. T Taylor completed a garden apartment in Maltby in April 2005. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative flats in Maltby with a long lease were worth £171,800. The mid-range ground rent payable was £55 billed yearly. The lease end date was in 2075. Given that there were 50 years outstanding we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including legals.
Last year we were e-mailed by Mr and Mrs. R Gómez , who took over the lease of a one bedroom flat in Maltby in May 2001. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Identical properties in Maltby with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 collected yearly. The lease termination date was on 12 October 2096. Having 71 years unexpired we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.