Unfortunately that a Malton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Malton property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Most leasehold owners in Malton will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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 |
Lease extensions in Malton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 procuring Malton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
David owned a high value flat in Malton being sold with a lease of a few days over fifty eight years unexpired. David informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be due on a lease extension were David to exercise his statutory right. David procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Summer we were phoned by Mrs Anna Moreau , who owned a recently refurbished flat in Malton in October 2004. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar properties in Malton with a long lease were valued around £203,200. The average amount of ground rent was £65 billed every twelve months. The lease lapsed in 2086. Having 61 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.
Last Summer we were phoned by Mr and Mrs. L David , who purchased a garden flat in Malton in July 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical flats in Malton with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 collected quarterly. The lease finished in 2097. Considering the 72 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.