Malpas leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Malpas will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Malpas with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
The conveyancers 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.
In 2014 Harry, came critically near to the 80-year threshold with the lease on his purpose- built apartment in Malpas. Having purchased his home 19 years ago, the unexpired term was of minimal concern. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Harry was able to extend his lease just under the wire last July. Harry and the freeholder ultimately settled on an amount of £5,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £950.
Dr G Norbert moved into a purpose-built flat in Malpas in July 1996. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Similar flats in Malpas with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 billed annually. The lease elapsed in 2076. Having 51 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including expenses.
Last year we were contacted by Mr and Mrs. O López , who acquired a studio flat in Malpas in August 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Malpas with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 billed per annum. The lease expired on 25 January 2087. Taking into account 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.