Unfortunately that a Maxton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Maxton property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. Most flat owners in Maxton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Leeds Building Society | |
| National Westminster Bank | |
| Virgin |
Lease extensions in Maxton can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 Maxton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Archie was the the leasehold owner of a 2 bedroom apartment in Maxton being sold with a lease of just over 61 years left. Archie informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Archie to invoke his statutory right. Archie obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were contacted by Dr Isobel Peterson who, having moved into a one bedroom flat in Maxton in April 2004. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative properties in Maxton with an extended lease were valued around £246,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease came to a finish on 23 November 2076. Considering the 50 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 not including expenses.
Last May we were approach by Mr and Mrs. A Howard , who completed a one bedroom flat in Maxton in January 1996. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparative premises in Maxton with 100 year plus lease were worth £208,200. The average ground rent payable was £65 invoiced quarterly. The lease lapsed in 2087. Taking into account 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of costs.