With a long leasehold premises in Abersychan, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Leasehold owners in Abersychan with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has under eighty years remaining, under the current legislation the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Abersychan with more than 100 years remaining 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
The lawyers that we work with procure Abersychan 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 conveyancer we work with provide it.
Dexter was the the leasehold proprietor of a conversion flat in Abersychan on the market with a lease of fraction over sixty years outstanding. Dexter informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr E Bell completed a one bedroom apartment in Abersychan in May 1999. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparative residencies in Abersychan with an extended lease were in the region of £260,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated on 2 October 2097. Having 71 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
In 2009 we were contacted by Dr Lucy Mason who, having owned a studio flat in Abersychan in February 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Abersychan with an extended lease were valued around £254,200. The mid-range amount of ground rent was £60 billed monthly. The lease lapsed in 2077. Having 51 years unexpired we approximated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 not including professional charges.