Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Malpas. Inevitably, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Malpas have the right to extend the lease for a further 90 years in accordance with statute. Please give careful attention before delaying your Malpas lease extension. Putting off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold properties in Malpas with more than one hundred 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 justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Malpas,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Malpas valuers.
Max was the the leasehold proprietor of a high value flat in Malpas on the market with a lease of a little over fifty eight years left. Max on an informal basis approached his landlord being a well known Bristol-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 on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Mr and Mrs. V Sharif completed a garden flat in Malpas in February 2010. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable residencies in Malpas with a long lease were in the region of £265,000. The average ground rent payable was £55 billed monthly. The lease finished in 2099. Taking into account 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Ms Lucy Harris took over the lease of a newly refurbished apartment in Malpas in August 2002. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparable residencies in Malpas with 100 year plus lease were valued around £166,400. The average ground rent payable was £60 invoiced per annum. The lease end date was on 16 July 2079. Given that there were 54 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.