It’s an underpublicised certainty that a Maida Vale residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Maida Vale property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Maida Vale will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Maida Vale with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Maida Vale lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Sebastian, came precariously near to the 80-year threshold with the lease on his first floor flat in Maida Vale. Having bought his flat 18 years previously, the lease term was of minimal bearing. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Sebastian arranged for a lease extension at the eleventh hour in April. Sebastian and the freeholder via the managing agents eventually agreed on a premium of £5,500 . If he failed to meet the deadline, the figure would have gone up by at least £1,100.
Mr and Mrs. V Ricardo moved into a purpose-built flat in Maida Vale in October 1995. The question was if we could estimate the price would be for a ninety year lease extension. Identical residencies in Maida Vale with an extended lease were in the region of £166,800. The average amount of ground rent was £50 billed yearly. The lease ended on 15 April 2075. Considering the 50 years remaining we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of costs.
An example of a Freehold Enfranchisement decision for a Maida Vale premises is 4 & 4A Charteris Road in June 2009. the Tribunal held that the price to be paid for the enfranchisement of 4/4a Charteris Road to be £15,510 for at 4and £15,694 for at 4a This case affected 2 flats. The unexpired residue of the current lease was 70.02 years.