Unfortunately that a Blaina residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Blaina property market.Where your lease has approximately ninety years left, you need to start thinking about 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 premium will be payable. The majority of flat owners in Blaina will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure Blaina 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.
Twenty four months ago Jackson, came seriously near to the eighty-year mark with the lease on his garden flat in Blaina. Having bought his flat twenty years ago, the lease term was of little bearing. by good luck, it dawned on him that he needed to take action soon on a lease extension. Jackson was able to extend his lease at the eleventh hour in July. Jackson and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If the lease had descended lower than eighty years, the price would have escalated by a minimum £1,125.
In 2009 we were approached by Mrs P Campbell who, having acquired a purpose-built flat in Blaina in May 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Blaina with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected annually. The lease lapsed on 24 January 2097. Considering the 71 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Last February we were contacted by Mr G Stewart , who was assigned a lease of a purpose-built flat in Blaina in October 1995. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Blaina with an extended lease were worth £225,800. The average amount of ground rent was £60 billed per annum. The lease lapsed in 2086. Given that there were 60 years remaining we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 not including costs.