Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bassaleg. Inevitably, the term of lease left reduces over time. This may pass by relatively unnoticed when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Bassaleg have the legal entitlement to extend the lease for an additional ninety years under statute. You should give due deliberation before putting off your Bassaleg lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Bassaleg 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 lawyer we work with provide it.
Jamie owned a studio apartment in Bassaleg on the market with a lease of just over 59 years unexpired. Jamie informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jamie to exercise his statutory right. Jamie procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were contacted by Dr Ella Martin who, having acquired a studio flat in Bassaleg in June 1999. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Bassaleg with an extended lease were valued around £205,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed on 15 February 2105. Given that there were 79 years remaining we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
Dr Austin Gómez owned a basement apartment in Bassaleg in May 2010. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative homes in Bassaleg with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 billed annually. The lease came to a finish in 2094. Given that there were 68 years left we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.