Blaenavon leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Blaenavon will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Blaenavon can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Blaenavon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tommy owned a 2 bedroom apartment in Blaenavon being marketed with a lease of a few days over fifty eight years unexpired. Tommy on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Ms O Mitchell took over the lease of a one bedroom flat in Blaenavon in November 2008. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical homes in Blaenavon with a long lease were in the region of £225,400. The average amount of ground rent was £45 collected yearly. The lease ran out in 2090. Having 64 years unexpired we calculated the premium to the landlord to extend the lease to be within £16,200 and £18,600 not including expenses.
In 2010 we were approached by Dr D Pérez who, having bought a newly refurbished apartment in Blaenavon in April 2000. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Comparable residencies in Blaenavon with an extended lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease termination date was in 2101. Having 75 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.