When it comes to residential leasehold premises in Malpas, you are in fact renting it for a certain period of time. In recent years 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 gets disproportionately greater notably when there are fewer than eighty years remaining. Residents in Malpas with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has below 80 years left, under the relevant Act the landlord can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Malpas can be a difficult process. We recommend you obtain guidance from a lawyer 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 a wealth of experience 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.
Edward was the the leasehold owner of a studio flat in Malpas on the market with a lease of fraction over 72 years outstanding. Edward informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Edward to exercise his statutory right. Edward obtained expert advice and secured satisfactory resolution informally and sell the flat.
Last April we were contacted by Mr and Mrs. P Simon , who was assigned a lease of a purpose-built apartment in Malpas in June 2007. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable residencies in Malpas with a long lease were worth £285,000. The average ground rent payable was £55 billed monthly. The lease ran out on 27 February 2106. Given that there were 80 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.
In 2011 we were called by Mr and Mrs. B Morel who, having moved into a ground floor apartment in Malpas in November 2000. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative properties in Malpas with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 billed per annum. The lease ended on 16 August 2086. Taking into account 60 years outstanding we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus legals.