On the balance of probabilities where you own a flat in Blaenavon you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Blaenavon 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.
Off the back of lengthy correspondence with the landlord of her basement apartment in Blaenavon, Victoria commenced the lease extension process just as the lease was approaching the critical eighty-year threshold. The transaction was finalised in September 2011. The landlord’s fees were kept to an absolute minimum.
Last July we were contacted by Dr Alfie Petit , who completed a purpose-built apartment in Blaenavon in November 1996. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Blaenavon with an extended lease were valued about £265,000. The average ground rent payable was £50 billed yearly. The lease came to a finish on 2 August 2098. Taking into account 73 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Mr and Mrs. L Evans purchased a recently refurbished apartment in Blaenavon in April 2000. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Blaenavon with 100 year plus lease were valued about £264,000. The average ground rent payable was £60 collected quarterly. The lease elapsed on 4 July 2078. Having 53 years left we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including fees.