The nearer a residential lease in Malvern nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Malvern will qualify for this right; that being said a lawyer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Malvern with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 Malvern can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 a wealth of experience dealing with Malvern lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October George, came very near to the 80-year threshold with the lease on his purpose- built flat in Malvern. Having bought his property two decades ago, the length of the lease was of little concern. As luck would have it, he realised he would imminently be paying an inflated amount for a lease extension. George arranged for a lease extension just ahead of time in March. George and the landlord eventually agreed on a premium of £5,500 . If the lease had dropped below eighty years, the figure would have become more exhorbitant by at least £875.
Last year we were e-mailed by Mr and Mrs. C Johnson , who took over the lease of a newly refurbished flat in Malvern in August 1999. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable homes in Malvern with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced per annum. The lease lapsed in 2105. Given that there were 80 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
Last Autumn we were e-mailed by Dr Elizabeth André , who completed a ground floor flat in Malvern in August 2000. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Malvern with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced annually. The lease termination date was on 23 April 2085. Having 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 not including legals.