With a domestic leasehold premises in Malpas, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Residents in Malpas with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has fewer than eighty years left, under the current Act the freeholder can calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Malpas with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
Lease extensions in Malpas can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Malpas lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful negotiations with the landlord of her first floor flat in Malpas, Megan initiated the lease extension process just as the lease was nearing the critical eighty-year deadline. The legal work completed in September 2009. The landlord’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Dr J Thomas who, having was assigned a lease of a garden flat in Malpas in May 1998. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Similar flats in Malpas with 100 year plus lease were in the region of £218,000. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated on 20 January 2088. Considering the 63 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of legals.
Mr and Mrs. S Smith bought a one bedroom apartment in Malpas in June 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Malpas with 100 year plus lease were worth £265,000. The average amount of ground rent was £55 billed monthly. The lease came to a finish in 2099. Considering the 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.