Malpas leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Malpas enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Malpas you really ought to see if your lease has between 70 and ninety years left. There are good reasons why a Malpas leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Malpas with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Malpas leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the freeholder of her leasehold flat in Malpas, Katherine initiated the lease extension process as the 80 year mark was fast advancing. The transaction completed in March 2006. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were phoned by Mr and Mrs. E Roberts who, having owned a purpose-built flat in Malpas in June 1995. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable homes in Malpas with 100 year plus lease were worth £227,800. The average ground rent payable was £45 invoiced monthly. The lease expiry date was on 22 November 2091. Having 65 years unexpired we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.
In 2011 we were approached by Mr and Mrs. D Vincent who, having completed a recently refurbished apartment in Malpas in May 2003. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Similar flats in Malpas with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected annually. The lease end date was on 23 November 2102. Having 76 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.