For anyone whose Bassaleg flat is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold properties in Bassaleg with more than 100 years left on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Bassaleg,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bassaleg valuers.
Last year Aarav, came dangerously near to the 80-year mark with the lease on his two bedroom apartment in Bassaleg. Having bought his flat two decades ago, the length of the lease was of minimal significance. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Aarav arranged for a lease extension just ahead of time in July. Aarav and the landlord eventually agreed on the final figure of £5,500 . If he failed to meet the deadline, the amount would have increased by a minimum £1,150.
Dr Owen Brown acquired a studio apartment in Bassaleg in March 2009. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable homes in Bassaleg with a long lease were in the region of £200,000. The average amount of ground rent was £50 invoiced annually. The lease expired in 2102. Considering the 77 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Mr and Mrs. M Mason took over the lease of a one bedroom flat in Bassaleg in August 1997. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Similar flats in Bassaleg with 100 year plus lease were in the region of £260,200. The mid-range ground rent payable was £65 billed every twelve months. The lease came to a finish in 2091. Taking into account 66 years outstanding we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of fees.