West Malling leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in West Malling will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in West Malling with more than 100 years left on the lease are often referred to as ‘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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
Using our service gives you increased control over the value of your West Malling leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Leo, started to get close to the 80-year threshold with the lease on his garden apartment in West Malling. In buying his flat 18 years previously, the unexpired term was of no bearing. Fortunately, he noticed he would soon be paying way over the odds for a lease extension. Leo extended the lease just ahead of time in January. Leo and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If the lease had descended to less than eighty years, the price would have increased by at least £925.
In 2014 we were approached by Mrs Daisy Davis who, having completed a purpose-built flat in West Malling in April 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical flats in West Malling with an extended lease were in the region of £230,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease expiry date was on 3 October 2086. Taking into account 60 years unexpired we calculated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 not including legals.
In 2009 we were e-mailed by Mr Elijah Lee who, having purchased a one bedroom apartment in West Malling in August 2002. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparable properties in West Malling with a long lease were valued around £210,000. The average amount of ground rent was £50 invoiced quarterly. The lease expired on 18 August 2106. Taking into account 80 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.