The value of Blaenavon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is below than eighty years
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Blaenavon,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blaenavon valuers.
16 months ago Daniel, came precariously near to the eighty-year mark with the lease on his garden flat in Blaenavon. Having purchased his property 18 years ago, the lease term was of no concern. Fortunately, he noticed he needed to take steps soon on Extending the lease. Daniel extended the lease just in the nick of time in April. Daniel and the freeholder subsequently settled on an amount of £5,000 . If he had missed the deadline, the sum would have increased by at least £925.
Last month we were called by Mr and Mrs. B Campbell , who acquired a purpose-built flat in Blaenavon in August 2003. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical premises in Blaenavon with 100 year plus lease were worth £193,400. The average ground rent payable was £65 billed quarterly. The lease came to a finish in 2085. Taking into account 59 years as a residual term we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus fees.
Mr H Miller moved into a one bedroom flat in Blaenavon in February 2007. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical properties in Blaenavon with a long lease were worth £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease terminated in 2096. Taking into account 70 years unexpired we estimated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 plus legals.