Top reasons for Malton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Malton property value

Malton 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 gets more expensive. Legislation has been in place for sometime now allowing qualifying Malton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Malton you would be well advised to check if your lease has between seventy and 90 years remaining. There are good reasons why a Malton flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay

An extended lease is almost the same value as a freehold

Leasehold properties in Malton with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not lend on a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks 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 evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Malton lease extensions?

Retaining our service gives you increased control over the value of your Malton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Malton Lease Extension Case Studies:

Muhammad, Malton, North Yorkshire

Half a year ago Muhammad, started to get near to the eighty-year threshold with the lease on his first floor flat in Malton. In buying his flat two decades ago, the lease term was of minimal relevance. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Muhammad arranged for a lease extension at the eleventh hour in May. Muhammad and the freeholder via the managing agents in the end settled on a premium of £5,500 . If the lease had dipped lower than eighty years, the premium would have become more costly by a minimum £1,075.

Malton case:

Mr L Davis completed a one bedroom flat in Malton in November 2001. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Similar homes in Malton with an extended lease were in the region of £218,000. The average amount of ground rent was £45 billed yearly. The lease concluded in 2089. Taking into account 63 years as a residual term we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including costs.

Malton case:

In 2012 we were called by Mr and Mrs. T Peterson who, having owned a purpose-built apartment in Malton in January 2010. The dilemma was if we could approximate the price could be for a ninety year lease extension. Identical homes in Malton with a long lease were worth £265,000. The average amount of ground rent was £50 collected yearly. The lease lapsed on 10 October 2100. Given that there were 74 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.