Top reasons for Malpas lease extension
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Main reasons to start your Malpas lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/malpas">Malpas</a> property value </h4>
<p> The re-sale value of a leasehold property in Malpas depends on how long the lease has left to run. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be concluded prior to the eighty year mark. Leasehold Reform legislation entitles Malpas qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension. <h4>Malpas property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold properties in Malpas with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it. <h4>Lenders may decide not to issue a mortgage on a short lease</h4>
Most mortgage lenders have tightened lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against property with shorter lease terms, particularly below 75 years as they are regarded as inadequate for lending purposes.
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<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<td>Yorkshire Building Society</td>
<td> 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.
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What makes us experts in Malpas lease extensions?
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The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
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Malpas Lease Extension Case Summaries:
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<h5> Muhammad, Malpas, Cheshire</h5>
<p> 16 months ago Muhammad, came dangerously near to the 80-year mark with the lease on his basement flat in Malpas. In buying his home 19 years previously, the length of the lease was of no interest. Thankfully, he recognised he needed to take action soon on a lease extension. Muhammad arranged for a lease extension at the eleventh hour last March. Muhammad and the freeholder via the managing agents eventually settled on sum of £5,000 . If he failed to meet the deadline, the amount would have gone up by at least £1,050.
<h5>Malpas case:</h5>
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Last year we were approach by Mr F Sánchez , who
took over the lease of a studio flat in Malpas in May 2006. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical homes in Malpas with an extended lease were valued around £191,000. The mid-range ground rent payable was £65 invoiced annually. The lease came to a finish on 3 April 2084. Having 58 years left we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including costs.
<h5>Malpas case:</h5>
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In 2009 we were e-mailed by Mr L Petit who, having owned a garden apartment in Malpas in August 1999. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative flats in Malpas with an extended lease were worth £250,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended in 2095. Considering the 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
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