When it comes to residential leasehold premises in Brecon Beacons, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Leasehold owners in Brecon Beacons with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has below 80 years outstanding, under the current Act the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Brecon Beacons with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Brecon Beacons leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Ali, started to get near to the 80-year mark with the lease on his ground floor flat in Brecon Beacons. Having bought his flat two decades ago, the unexpired term was of no interest. As luck would have it, he realised he would soon be paying an escalated premium for a lease extension. Ali was able to extend his lease just in the nick of time last January. Ali and the freeholder via the managing agents ultimately settled on an amount of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £1,050.
Last July we were contacted by Dr Holly Wood , who acquired a purpose-built flat in Brecon Beacons in October 2002. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Comparable residencies in Brecon Beacons with a long lease were in the region of £208,200. The average ground rent payable was £65 collected per annum. The lease concluded on 22 October 2087. Considering the 61 years unexpired we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including professional charges.
Dr Edward Girard bought a newly refurbished flat in Brecon Beacons in January 2001. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar flats in Brecon Beacons with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease terminated in 2098. Considering the 72 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.