Chances are that where you own a flat in Malpas you actually own a long leasehold interest over your property
Leasehold properties in Malpas with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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: • 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 • The value of the property subject to the short remaining term is £500,000 or more AND • 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Malpas can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Malpas lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Hunter, started to get close to the 80-year mark with the lease on his ground floor apartment in Malpas. In buying his home two decades ago, the lease term was of minimal importance. Thankfully, he noticed he needed to take action soon on a lease extension. Hunter extended the lease just under the wire last March. Hunter and the freeholder ultimately agreed on an amount of £5,000 . If the lease had descended below eighty years, the sum would have escalated by a minimum £1,075.
Mrs H Hill moved into a garden apartment in Malpas in November 2009. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Similar premises in Malpas with an extended lease were in the region of £264,000. The average amount of ground rent was £60 invoiced every twelve months. The lease expiry date was in 2079. Considering the 53 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including legals.
Mr and Mrs. L Simon purchased a garden apartment in Malpas in February 2005. The question was if we could estimate the price would be for a 90 year extension to my lease. Similar homes in Malpas with 100 year plus lease were worth £225,400. The average ground rent payable was £45 invoiced annually. The lease termination date was in 2090. Given that there were 64 years unexpired we calculated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 plus professional charges.