When it comes to domestic leasehold premises in Abertridwr, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years left. Leasehold owners in Abertridwr with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the current legislation the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Abertridwr with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Abertridwr,the lease extension lawyers 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 Abertridwr valuers.
Rory owned a conversion flat in Abertridwr on the market with a lease of a few days over sixty years left. Rory informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Rory to exercise his statutory right. Rory procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last month we were contacted by Dr Y Laurent , who completed a newly refurbished flat in Abertridwr in September 1997. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Abertridwr with an extended lease were in the region of £227,800. The mid-range ground rent payable was £45 invoiced quarterly. The lease expired on 2 October 2090. Given that there were 65 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
Last Winter we were called by Dr R Sánchez , who was assigned a lease of a one bedroom flat in Abertridwr in June 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Abertridwr with an extended lease were valued around £270,000. The average ground rent payable was £55 billed yearly. The lease ended on 9 April 2101. Considering the 76 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.