Malton leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Malton will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain cases you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Malton with more than one hundred years remaining on the lease are sometimes referred to as ‘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 service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Malton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Malton valuers.
Two years ago Samuel, came seriously close to the eighty-year mark with the lease on his two bedroom flat in Malton. In buying his flat two decades ago, the length of the lease was of little importance. Luckily, he realised he needed to take action soon on Extending the lease. Samuel was able to extend his lease just ahead of time in June. Samuel and the freeholder eventually settled on the final figure of £6,000 . If the lease had dropped lower than 80 years, the figure would have gone up by at least £1,100.
Last Christmas we were called by Mrs Katie Taylor , who purchased a one bedroom flat in Malton in January 2000. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Identical premises in Malton with 100 year plus lease were in the region of £249,200. The average amount of ground rent was £60 invoiced quarterly. The lease ended on 14 February 2077. Considering the 51 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £42,800 and £49,400 exclusive of expenses.
In 2011 we were phoned by Mr A Jones who, having took over the lease of a one bedroom apartment in Malton in September 2012. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Malton with 100 year plus lease were valued about £210,600. The average amount of ground rent was £65 billed monthly. The lease terminated in 2088. Considering the 62 years unexpired we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of legals.