The closer a residential lease in Maxton nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in Maxton will meet the qualifying criteria; however a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Maxton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Sam owned a studio flat in Maxton on the market with a lease of a little over 59 years unexpired. Sam informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Sam to exercise his statutory right. Sam obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were e-mailed by Mr A Rodríguez who, having owned a one bedroom apartment in Maxton in January 2010. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative properties in Maxton with a long lease were worth £173,800. The mid-range ground rent payable was £65 collected annually. The lease end date was in 2081. Given that there were 55 years as a residual term we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus expenses.
In 2009 we were e-mailed by Mr and Mrs. C Brown who, having was assigned a lease of a studio apartment in Maxton in March 2008. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Maxton with a long lease were worth £235,200. The average amount of ground rent was £45 collected monthly. The lease concluded on 4 May 2092. Taking into account 66 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.