Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Brecon Beacons. Inevitably, the term of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Brecon Beacons have the right to extend the lease for an additional 90 years in accordance with statute. Do give due consideration before delaying your Brecon Beacons lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Brecon Beacons,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brecon Beacons valuers.
Milo was the the leasehold owner of a studio apartment in Brecon Beacons on the market with a lease of just over 61 years left. Milo informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Spring we were approach by Dr I Moreau , who bought a garden apartment in Brecon Beacons in March 1999. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar properties in Brecon Beacons with a long lease were worth £246,800. The average amount of ground rent was £60 invoiced annually. The lease came to a finish on 8 August 2075. Taking into account 50 years remaining we calculated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 not including legals.
In 2014 we were e-mailed by Mr and Mrs. N Cooper who, having took over the lease of a recently refurbished apartment in Brecon Beacons in February 2005. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparable properties in Brecon Beacons with 100 year plus lease were worth £203,200. The mid-range amount of ground rent was £65 billed monthly. The lease expired on 4 August 2086. Taking into account 61 years remaining we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of expenses.