Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Bedwas. Clearly, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Bedwas have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give due consideration before delaying your Bedwas lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Bedwas,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bedwas valuers.
Harvey was the the leasehold owner of a 2 bedroom flat in Bedwas on the market with a lease of fraction over 72 years unexpired. Harvey informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Harvey to exercise his statutory right. Harvey procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. U Davis acquired a one bedroom flat in Bedwas in November 2007. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Identical flats in Bedwas with a long lease were valued around £205,000. The mid-range amount of ground rent was £50 billed annually. The lease lapsed in 2105. Considering the 79 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2009 we were contacted by Dr Luca Jones who, having owned a purpose-built apartment in Bedwas in April 2007. The question was if we could estimate the premium would be for a ninety year lease extension. Comparable properties in Bedwas with a long lease were worth £275,000. The average amount of ground rent was £65 collected every twelve months. The lease ran out in 2094. Having 68 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.