As the length of the unexpired term of a Maida Hill residential lease lessens so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Maida Hill will meet the qualifying criteria; that being said a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Maida Hill,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Maida Hill valuers.
Last year Isaac, started to get close to the eighty-year threshold with the lease on his leasehold flat in Maida Hill. In buying his property two decades ago, the length of the lease was of no importance. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Isaac was able to extend his lease just under the wire in June. Isaac and the freeholder via the management company ultimately agreed on an amount of £6,000 . If he had missed the deadline, the amount would have gone up by at least £1,125.
In 2011 we were phoned by Mrs Katherine Nguyen who, having owned a newly refurbished flat in Maida Hill in September 2000. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative homes in Maida Hill with a long lease were in the region of £270,000. The average ground rent payable was £55 invoiced yearly. The lease lapsed in 2099. Having 75 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
An example of a Lease Extension decision for a Maida Hill residence 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 term as at the valuation date was 60 years.