When it comes to long leasehold property in Maida Hill, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years left. Anyone in Maida Hill with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below 80 years outstanding, under the relevant Act the landlord is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Maida Hill leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Omar was the the leasehold owner of a conversion flat in Maida Hill being sold with a lease of fraction over 59 years remaining. Omar on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Omar to invoke his statutory right. Omar procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Ms H Cox completed a garden apartment in Maida Hill in January 2009. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Comparative homes in Maida Hill with an extended lease were valued around £275,000. The average amount of ground rent was £55 billed yearly. The lease terminated in 2101. Having 76 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Maida Hill premises is Flat 1 57 Oxford Gardens in January 2014. the Tribunal decided that the premium to be paidfor a new lease is £61,650.00. This case related to 1 flat. The unexpired residue of the current lease was 60 years.