Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Malton. Inevitably, the term of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Malton have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give due deliberation before putting off your Malton lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Malton can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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.
Matthew was the the leasehold owner of a 2 bedroom apartment in Malton on the market with a lease of just over 61 years remaining. Matthew on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last month we were e-mailed by Dr Lewis Collins , who bought a one bedroom apartment in Malton in May 2008. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical homes in Malton with a long lease were worth £285,000. The average ground rent payable was £55 collected monthly. The lease terminated on 11 October 2106. Taking into account 80 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
In 2010 we were approached by Ms Chloe Young who, having purchased a one bedroom apartment in Malton in November 2001. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative premises in Malton with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease finished on 6 September 2086. Given that there were 60 years unexpired we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including expenses.