Unfortunately that a Blaenavon residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Blaenavon property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be due. The majority of flat owners in Blaenavon will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Leeds Building Society | |
| Santander | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Blaenavon,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blaenavon valuers.
Last Christmas Oscar, came critically near to the 80-year mark with the lease on his two bedroom flat in Blaenavon. Having bought his flat two decades ago, the length of the lease was of little importance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Oscar was able to extend his lease at the eleventh hour last July. Oscar and the freeholder via the management company eventually settled on sum of £5,500 . If he had missed the deadline, the premium would have gone up by a minimum £975.
Last Spring we were called by Dr M Thompson , who bought a studio apartment in Blaenavon in January 2001. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Identical premises in Blaenavon with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed in 2097. Given that there were 71 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
In 2011 we were approached by Mrs M Hernández who, having owned a ground floor flat in Blaenavon in January 2005. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical homes in Blaenavon with an extended lease were worth £254,200. The average amount of ground rent was £60 collected annually. The lease concluded on 15 September 2077. Having 51 years left we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including professional charges.