Malton leases on residential properties are gradually decreasing in 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. The majority of owners of residential leasehold property in Malton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Malton you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Malton can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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.
Toby owned a studio apartment in Malton being marketed with a lease of a little over 72 years remaining. Toby informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to exercise his statutory right. Toby procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were phoned by Ms Kelsey Bernard , who owned a studio apartment in Malton in May 1997. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar flats in Malton with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 invoiced quarterly. The lease concluded in 2079. Given that there were 54 years remaining we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 plus fees.
Last Spring we were contacted by Dr D Johnson , who was assigned a lease of a basement flat in Malton in June 1995. The question was if we could estimate the price would be to extend the lease by a further 90 years. Comparative homes in Malton with an extended lease were in the region of £227,800. The average ground rent payable was £45 billed quarterly. The lease end date was on 12 May 2090. Having 65 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.