With a domestic leasehold property in Malvern, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years remaining. Leasehold owners in Malvern with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When the lease term has under eighty years outstanding, under the relevant Act the freeholder can calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Malvern can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 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 Daniel, started to get close to the 80-year mark with the lease on his garden apartment in Malvern. In buying his home twenty years ago, the lease term was of no interest. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Daniel was able to extend his lease just under the wire in September. Daniel and the freeholder via the managing agents eventually settled on a premium of £6,000 . If he failed to meet the deadline, the price would have become more costly by a minimum £1,050.
Last Winter we were e-mailed by Mr Y King , who acquired a one bedroom apartment in Malvern in March 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Malvern with an extended lease were valued around £166,400. The mid-range ground rent payable was £60 collected annually. The lease concluded on 25 May 2079. Given that there were 54 years outstanding we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus professional charges.
In 2013 we were contacted by Ms Molly López who, having owned a studio apartment in Malvern in May 2012. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Similar homes in Malvern with a long lease were worth £227,800. The mid-range ground rent payable was £45 billed every twelve months. The lease expired on 24 April 2090. Having 65 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.