Maulden 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 your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Maulden residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Maulden you would be well advised to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered 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 equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Maulden can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 Maulden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam was the the leasehold owner of a high value apartment in Maulden being marketed with a lease of just over fifty eight years outstanding. Adam on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Adam to exercise his statutory right. Adam obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Last Autumn we were called by Dr E Lefebvre , who owned a ground floor apartment in Maulden in January 2001. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparable flats in Maulden with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 invoiced annually. The lease elapsed on 4 August 2090. Given that there were 64 years outstanding we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including expenses.
In 2009 we were contacted by Mr and Mrs. E Díaz who, having owned a basement flat in Maulden in July 2012. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Maulden with an extended lease were in the region of £189,000. The average amount of ground rent was £55 collected annually. The lease terminated on 7 March 2079. Having 53 years left we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.