Blaina residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises 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. |
| Chelsea 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. |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
Using our service gives you enhanced control over the value of your Blaina leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Stanley owned a conversion apartment in Blaina being sold with a lease of just over fifty eight years left. Stanley informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Stanley to invoke his statutory right. Stanley procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last Christmas we were phoned by Ms Danielle Peterson , who took over the lease of a first floor flat in Blaina in May 2001. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparable properties in Blaina with a long lease were valued around £181,600. The average ground rent payable was £55 billed annually. The lease came to a finish on 8 September 2078. Having 52 years left we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.
In 2009 we were contacted by Mrs Sian Howard who, having was assigned a lease of a one bedroom flat in Blaina in March 2011. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Blaina with an extended lease were in the region of £290,000. The average amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 28 March 2098. Considering the 72 years remaining we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including costs.