The re-sale value of a leasehold property in Malvern depends on how many years the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded prior to the eighty year threshold. Statute enables Malvern qualifying lessees to an additional term of ninety years on top of the remaining term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Lease extensions in Malvern can be a difficult process. We recommend you secure guidance from a conveyancer 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 a wealth of experience procuring Malvern lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley owned a 2 bedroom apartment in Malvern on the market with a lease of a few days over sixty years left. Stanley informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Stanley to exercise his statutory right. Stanley procured expert advice and secured an acceptable deal informally and sell the property.
Last Christmas we were contacted by Mr and Mrs. W Gunderson , who purchased a purpose-built flat in Malvern in February 1995. The question was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in Malvern with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 collected annually. The lease came to a finish in 2092. Taking into account 66 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
In 2011 we were called by Mr and Mrs. H Evans who, having owned a first floor apartment in Malvern in November 2007. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparative residencies in Malvern with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed annually. The lease elapsed in 2103. Taking into account 77 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.