When it comes to long leasehold premises in Malpas, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Leasehold owners in Malpas with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has under eighty years remaining, under the relevant Act the freeholder can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| Santander | |
| The Mortgage Works | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Malpas,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Malpas valuers.
Callum owned a studio flat in Malpas being marketed with a lease of a little over 61 years left. Callum on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Callum to invoke his statutory right. Callum procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. G Brown moved into a ground floor flat in Malpas in August 2000. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Similar properties in Malpas with an extended lease were in the region of £275,000. The average amount of ground rent was £55 collected yearly. The lease lapsed in 2102. Having 76 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
Last Autumn we were contacted by Mr and Mrs. O Thompson , who was assigned a lease of a basement apartment in Malpas in July 2012. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative residencies in Malpas with an extended lease were valued around £176,200. The average amount of ground rent was £65 invoiced annually. The lease termination date was in 2082. Taking into account 56 years outstanding we calculated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of costs.