The re-sale value of a leasehold property in Blaina is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised in advance of the 80 year threshold. Current legislation entitles Blaina qualifying lessees to an additional term of 90 years in addition to the remaining term, at a nominal rent (no ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Engaging 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 decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Joshua, came very close to the eighty-year mark with the lease on his ground floor apartment in Blaina. In buying his flat 19 years ago, the lease term was of no bearing. Luckily, he recognised he would imminently be paying an escalated premium for a lease extension. Joshua extended the lease just under the wire last August. Joshua and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If the lease had slipped to less than eighty years, the sum would have become more costly by at least £1,150.
In 2014 we were contacted by Dr A Howard who, having acquired a recently refurbished flat in Blaina in April 2009. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Blaina with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed quarterly. The lease terminated on 25 January 2098. Given that there were 73 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
In 2012 we were e-mailed by Mr Edward Lee who, having bought a purpose-built apartment in Blaina in October 2006. We are asked if we could approximate the price would be to extend the lease by an additional years. Similar premises in Blaina with an extended lease were valued about £240,600. The average ground rent payable was £60 collected every twelve months. The lease lapsed in 2087. Considering the 62 years as a residual term we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.