With a residential leasehold property in Maida Vale, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years remaining. Anyone in Maida Vale with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has below eighty years left, under the current legislation the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Maida Vale with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you better control over the value of your Maida Vale leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her studio apartment in Maida Vale, Shannon initiated the lease extension process as the 80 year deadline was rapidly approaching. The lease extension was concluded in June 2009. The landlord’s fees were negotiated to about 550 pounds.
Mrs K King took over the lease of a ground floor flat in Maida Vale in February 2003. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Maida Vale with an extended lease were in the region of £275,000. The average ground rent payable was £45 billed annually. The lease expired in 2094. Having 69 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Maida Vale property is 4 & 4A Charteris Road in June 2009. the Tribunal held that the price to be paid for the enfranchisement of 4/4a Charteris Road to be £15,510 for at 4and £15,694 for at 4a This case affected 2 flats. The unexpired term was 70.02 years.