On the balance of probabilities if you own a flat in Bedwas you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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 conveyancers that we work with handle Bedwas 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.
Trailing lengthy negotiations with the freeholder of her purpose-built apartment in Bedwas, Jodie commenced the lease extension process just as her lease was nearing the crucial 80-year threshold. The lease extension was finalised in October 2011. The landlord’s fees were restricted to below 600 pounds.
Last Autumn we were phoned by Mr and Mrs. A Ramírez , who moved into a first floor apartment in Bedwas in June 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar residencies in Bedwas with an extended lease were valued around £171,800. The mid-range amount of ground rent was £55 collected monthly. The lease ended on 24 March 2076. Taking into account 50 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus professional charges.
Last Summer we were approach by Mr and Mrs. P Williams , who moved into a recently refurbished flat in Bedwas in July 2002. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical premises in Bedwas with a long lease were valued about £280,000. The average amount of ground rent was £45 billed yearly. The lease finished on 17 November 2096. Taking into account 70 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.