The market value of a leasehold property in Blaina is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed in advance of the 80 year mark. Leasehold Reform legislation enables Blaina qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Blaina with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Blaina,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 Blaina valuers.
Kian was the the leasehold owner of a 2 bedroom flat in Blaina being sold with a lease of a little over sixty years left. Kian informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Kian to invoke his statutory right. Kian obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2010 we were contacted by Dr H Hall who, having purchased a ground floor apartment in Blaina in May 2009. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Blaina with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced annually. The lease finished in 2079. Given that there were 54 years left we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 plus expenses.
In 2014 we were contacted by Dr Alicia González who, having owned a one bedroom apartment in Blaina in August 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative residencies in Blaina with an extended lease were worth £295,000. The average amount of ground rent was £45 billed annually. The lease expired on 25 May 2099. Having 74 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.