The value of Malton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Malton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Malton valuers.
Twenty four months ago Jayden, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Malton. In buying his flat two decades ago, the length of the lease was of minimal concern. by good luck, he noticed he would imminently be paying an escalated premium for a lease extension. Jayden was able to extend his lease just under the wire last September. Jayden and the freeholder in the end agreed on a premium of £6,000 . If he had missed the deadline, the figure would have become more exhorbitant by a minimum £950.
Last month we were phoned by Mr and Mrs. O Collins , who owned a garden flat in Malton in January 1996. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Malton with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 billed annually. The lease ended in 2091. Taking into account 66 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Mr and Mrs. G Walker moved into a garden apartment in Malton in June 2011. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparative residencies in Malton with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease concluded in 2102. Considering the 77 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.