With a residential leasehold premises in Malpas, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Anyone in Malpas with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the relevant legislation the freeholder can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Malpas,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Malpas valuers.
Last October Aarav, started to get near to the 80-year mark with the lease on his two bedroom apartment in Malpas. Having bought his property 19 years ago, the lease term was of minimal bearing. by good luck, he recognised he needed to take action soon on Extending the lease. Aarav arranged for a lease extension at the eleventh hour last March. Aarav and the landlord subsequently settled on sum of £5,000 . If the lease had slipped lower than eighty years, the figure would have become more exhorbitant by at least £1,075.
Last month we were phoned by Ms Naomi Mercier , who bought a one bedroom apartment in Malpas in March 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative residencies in Malpas with a long lease were valued about £270,000. The average ground rent payable was £55 collected per annum. The lease finished on 27 October 2101. Given that there were 75 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Dr Ibrahim Jackson moved into a recently refurbished flat in Malpas in June 2006. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar properties in Malpas with 100 year plus lease were in the region of £168,800. The average ground rent payable was £60 invoiced monthly. The lease concluded on 6 August 2081. Given that there were 55 years unexpired we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus expenses.