As the length of the unexpired term of a Malpas domestic lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 125 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Malpas will qualify for this right; however a lawyer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Malpas leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Samuel, came critically close to the 80-year mark with the lease on his basement apartment in Malpas. Having bought his property 19 years previously, the unexpired term was of no significance. As luck would have it, he noticed he would soon be paying an escalated premium for a lease extension. Samuel was able to extend his lease just under the wire last June. Samuel and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If he not met the deadline, the figure would have become more costly by a minimum £1,100.
Mr and Mrs. O Vincent took over the lease of a garden apartment in Malpas in June 2005. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable residencies in Malpas with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease came to a finish in 2095. Having 69 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Summer we were e-mailed by Mr and Mrs. S Moore , who bought a newly refurbished flat in Malpas in August 2008. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative premises in Malpas with a long lease were valued about £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease expired on 5 March 2106. Given that there were 80 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.