Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Malvern. Inevitably, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Malvern have the legal entitlement to extend the lease for a further ninety years in accordance with statute. You should give due attention before delaying your Malvern lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| The Mortgage Works |
The conveyancing solicitors 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 2014 Omar, started to get close to the 80-year mark with the lease on his one bedroom flat in Malvern. Having bought his property 19 years ago, the unexpired term was of minimal importance. by good luck, he recognised he would imminently be paying way over the odds for Extending the lease. Omar arranged for a lease extension at the eleventh hour last August. Omar and the landlord who owned the flat above in the end settled on a premium of £5,500 . If he not met the deadline, the sum would have increased by a minimum £1,125.
Ms Chantelle Morris completed a purpose-built apartment in Malvern in July 2006. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Similar properties in Malvern with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ended in 2104. Considering the 78 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.
In 2010 we were phoned by Mr Milo Davies who, having moved into a one bedroom flat in Malvern in January 2005. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparable properties in Malvern with a long lease were in the region of £186,000. The mid-range amount of ground rent was £65 billed quarterly. The lease lapsed in 2084. Taking into account 58 years unexpired we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 plus costs.