As the length of the unexpired term of a Brecon Beacons domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 125 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Brecon Beacons will qualify for this right; that being said a conveyancing solicitor can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service gives you better control over the value of your Brecon Beacons leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kai was the the leasehold owner of a high value apartment in Brecon Beacons on the market with a lease of a few days over 61 years outstanding. Kai informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2010 we were phoned by Mr and Mrs. K Sánchez who, having owned a one bedroom apartment in Brecon Beacons in February 2004. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative flats in Brecon Beacons with an extended lease were worth £264,000. The mid-range ground rent payable was £60 billed yearly. The lease finished on 9 March 2078. Given that there were 53 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including professional charges.
Dr Joseph Rogers owned a garden apartment in Brecon Beacons in July 2004. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical flats in Brecon Beacons with a long lease were in the region of £220,400. The average amount of ground rent was £45 collected monthly. The lease ran out in 2089. Given that there were 64 years left we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of fees.