The nearer a residential lease in Malpas nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Malpas will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Malpas with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle 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.
Following unsuccessful correspondence with the freeholder of her basement apartment in Malpas, Stephanie started the lease extension process just as the lease was approaching the crucial eighty-year mark. The transaction completed in July 2014. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. Y Rogers purchased a newly refurbished flat in Malpas in February 2008. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Similar premises in Malpas with a long lease were in the region of £280,000. The average amount of ground rent was £55 invoiced quarterly. The lease finished on 11 February 2103. Taking into account 78 years outstanding we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
In 2013 we were called by Dr P Hall who, having moved into a newly refurbished flat in Malpas in November 2007. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar properties in Malpas with an extended lease were in the region of £191,000. The average amount of ground rent was £65 billed every twelve months. The lease concluded in 2083. Taking into account 58 years unexpired we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of legals.