Bedwas residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Bedwas,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 Bedwas valuers.
Michael owned a conversion apartment in Bedwas being sold with a lease of a little over 72 years remaining. Michael informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Winter we were called by Dr Felix Leroy , who was assigned a lease of a purpose-built flat in Bedwas in February 1998. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable premises in Bedwas with 100 year plus lease were worth £260,200. The average amount of ground rent was £65 collected every twelve months. The lease end date was in 2091. Considering the 66 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus legals.
Last Autumn we were contacted by Mr and Mrs. B White , who purchased a ground floor flat in Bedwas in November 2002. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar residencies in Bedwas with an extended lease were worth £198,800. The mid-range ground rent payable was £55 billed yearly. The lease elapsed in 2080. Considering the 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus legals.