Maxton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Maxton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Maxton you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Maxton with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Maxton can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
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 Maxton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ali was the the leasehold proprietor of a conversion apartment in Maxton being marketed with a lease of a little over fifty eight years left. Ali on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Ali to exercise his statutory right. Ali procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Last year we were phoned by Mr Y Robinson , who bought a ground floor apartment in Maxton in February 2002. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Maxton with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected annually. The lease ended in 2104. Considering the 79 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.
In 2014 we were called by Mr and Mrs. I Taylor who, having bought a recently refurbished flat in Maxton in May 2004. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in Maxton with 100 year plus lease were valued around £193,400. The mid-range amount of ground rent was £65 billed monthly. The lease concluded in 2084. Given that there were 59 years outstanding we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including legals.