Main reasons to start your Malpas lease extension

Why you should start your Malpas lease extension today:

A Malpas leasehold property depreciates with the years remaining on the lease.

Malpas leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Malpas tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Malpas you should check if your lease has between 70 and ninety years left. There are compelling reasons why a Malpas flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay

Malpas property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies may not loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This will be problematic once you need to market or remortgage your property as it will be effectively unmortgageable. Even though you might have no imminent plan to sell but when you do your purchaser will have to wait a couple of years before being able to initiate the legal procedures for an extension to the lease.

Get in touch with one of our Malpas lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle Malpas 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.

Malpas Lease Extension Case Summaries:

Katie, Malpas, Cheshire,

Off the back of protracted discussions with the freeholder of her basement apartment in Malpas, Katie commenced the lease extension process as the eighty year deadline was rapidly nearing. The transaction was concluded in February 2010. The landlord’s fees were kept to an absolute minimum.

Malpas case:

In 2009 we were e-mailed by Mr and Mrs. M François who, having took over the lease of a first floor flat in Malpas in October 2004. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparable homes in Malpas with a long lease were worth £176,200. The mid-range amount of ground rent was £65 billed yearly. The lease ran out in 2082. Having 56 years unexpired we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus costs.

Malpas case:

In 2012 we were contacted by Dr I Cook who, having completed a one bedroom apartment in Malpas in October 2004. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparative premises in Malpas with a long lease were worth £242,600. The mid-range ground rent payable was £45 collected per annum. The lease ended on 15 January 2093. Having 67 years remaining we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of legals.