On the balance of probabilities if you own a flat in Malpas you actually own a long leasehold interest over your property
Leasehold residencies in Malpas with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Malpas leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Blake was the the leasehold proprietor of a high value apartment in Malpas being marketed with a lease of fraction over 61 years outstanding. Blake on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Mr and Mrs. W Flores was assigned a lease of a ground floor apartment in Malpas in May 2008. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparable residencies in Malpas with an extended lease were valued about £208,200. The mid-range amount of ground rent was £65 billed yearly. The lease expired in 2087. Given that there were 61 years remaining we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.
Last month we were e-mailed by Ms S Ward , who was assigned a lease of a garden apartment in Malpas in April 1998. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable residencies in Malpas with an extended lease were worth £260,000. The average amount of ground rent was £50 collected monthly. The lease ended on 23 November 2098. Having 72 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.