For those whose Malton home is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Malton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Blake, came perilously near to the eighty-year mark with the lease on his ground floor flat in Malton. In buying his flat two decades ago, the lease term was of minimal concern. Fortunately, he became aware that he would imminently be paying an inflated amount for a lease extension. Blake arranged for a lease extension at the eleventh hour in August. Blake and the landlord ultimately agreed on the final figure of £6,000 . If the lease had descended lower than 80 years, the figure would have gone up by at least £975.
Dr Melissa Bonnet moved into a first floor apartment in Malton in August 2004. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Similar flats in Malton with a long lease were valued about £176,200. The average amount of ground rent was £65 invoiced per annum. The lease ended in 2082. Given that there were 56 years unexpired we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus fees.
Mr T Harris purchased a ground floor flat in Malton in November 2005. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable residencies in Malton with an extended lease were worth £237,600. The average amount of ground rent was £45 collected quarterly. The lease termination date was on 10 July 2093. Taking into account 67 years left we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including expenses.