With a residential leasehold premises in Malpas, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking 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. Anyone in Malpas with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has below 80 years remaining, under the relevant statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Malpas with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society |
Retaining our service will provide you increased control over the value of your Malpas leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Leon, came precariously near to the eighty-year threshold with the lease on his two bedroom flat in Malpas. In buying his home two decades ago, the length of the lease was of little importance. Luckily, he noticed he needed to take action soon on Extending the lease. Leon arranged for a lease extension just ahead of time last January. Leon and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If the lease had dropped lower than eighty years, the premium would have gone up by at least £1,000.
In 2011 we were called by Ms G James who, having owned a studio apartment in Malpas in October 2007. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative flats in Malpas with an extended lease were worth £200,800. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish on 17 September 2086. Having 60 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of costs.
Last month we were called by Mr Aiden Rodríguez , who took over the lease of a newly refurbished flat in Malpas in October 2009. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Similar residencies in Malpas with an extended lease were in the region of £255,000. The average ground rent payable was £50 invoiced monthly. The lease end date was in 2097. Given that there were 71 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.