There is no doubt about it a leasehold property in Maulden is a wasting asset as a result of the diminishing lease term. Where the lease has, over 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in Maulden will qualify for this right; nevertheless a conveyancer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
Using our service will provide you increased control over the value of your Maulden leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Austin, came dangerously near to the eighty-year threshold with the lease on his basement flat in Maulden. Having bought his property 19 years previously, the unexpired term was of minimal interest. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Austin extended the lease at the eleventh hour last March. Austin and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If the lease had slipped to less than eighty years, the amount would have become more exhorbitant by at least £1,075.
Last Autumn we were called by Mrs U Mason , who took over the lease of a one bedroom apartment in Maulden in September 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Maulden with an extended lease were worth £275,000. The average ground rent payable was £65 invoiced yearly. The lease ended in 2092. Given that there were 68 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Dr M Williams moved into a recently refurbished apartment in Maulden in September 1997. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative premises in Maulden with 100 year plus lease were valued about £208,600. The mid-range amount of ground rent was £60 collected annually. The lease ended in 2081. Considering the 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of costs.