Malvern leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Malvern tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Malvern you should check if your lease has between 70 and 90 years remaining. There are good reasons why a Malvern leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Malvern with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland |
The conveyancers that we work with handle Malvern lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Evan, came very near to the 80-year threshold with the lease on his purpose- built apartment in Malvern. Having purchased his flat twenty years previously, the length of the lease was of no concern. Fortunately, he recognised he needed to take action soon on Extending the lease. Evan was able to extend his lease at the eleventh hour in April. Evan and the landlord in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the price would have become more costly by at least £1,125.
In 2010 we were called by Mr and Mrs. V Thompson who, having took over the lease of a ground floor apartment in Malvern in October 2007. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Malvern with 100 year plus lease were worth £193,400. The average amount of ground rent was £65 billed quarterly. The lease ran out in 2085. Having 59 years left we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus fees.
Mr and Mrs. N Edwards took over the lease of a one bedroom flat in Malvern in March 2003. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Malvern with a long lease were valued around £250,000. The average ground rent payable was £50 invoiced quarterly. The lease concluded in 2096. Considering the 70 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.