Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Bassaleg. Clearly, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Bassaleg have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give due deliberation before delaying your Bassaleg lease extension. Putting off that expense now simply increases the price you will eventually incur for a lease extension
Leasehold residencies in Bassaleg with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Bassaleg can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 dealing with Bassaleg lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her garden flat in Bassaleg, Abbie started the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was finalised in May 2013. The freeholder’s fees were kept to an absolute minimum.
Mr James Bonnet acquired a studio apartment in Bassaleg in July 2007. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Bassaleg with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease terminated in 2099. Considering the 74 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
In 2014 we were called by Dr C Ricardo who, having moved into a garden flat in Bassaleg in July 1998. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Bassaleg with an extended lease were worth £243,000. The mid-range amount of ground rent was £65 billed quarterly. The lease came to a finish on 11 February 2088. Taking into account 63 years left we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including expenses.