On the balance of probabilities if you own a flat in Machen you actually own a long leasehold interest over your property
Leasehold premises in Machen with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Machen can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
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 procuring Machen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Matthew, came critically near to the 80-year mark with the lease on his two bedroom apartment in Machen. In buying his property two decades ago, the length of the lease was of no interest. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Matthew was able to extend his lease just under the wire in March. Matthew and the freeholder via the managing agents eventually settled on a premium of £6,000 . If he had missed the deadline, the price would have escalated by a minimum £1,150.
In 2011 we were called by Mr Joseph Evans who, having bought a basement apartment in Machen in January 1996. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Machen with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ended on 3 October 2095. Given that there were 70 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
In 2010 we were phoned by Mr Elijah Collins who, having acquired a one bedroom flat in Machen in August 2012. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative residencies in Machen with a long lease were worth £223,400. The average amount of ground rent was £60 invoiced annually. The lease ran out on 24 May 2084. Having 59 years unexpired we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of fees.