Brecon leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease drops under 80 years - otherwise a higher amount will be payable. Flat owners in Brecon will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Retaining our service will provide you better control over the value of your Brecon leasehold, as your property will be more valuable and saleable in relation to the 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.
Off the back of lengthy correspondence with the landlord of her ground floor apartment in Brecon, Abigail commenced the lease extension process as the 80 year deadline was rapidly advancing. The transaction was concluded in January 2008. The landlord’s charges were restricted to under 600 pounds.
Last Winter we were approach by Ms Yasmin Fournier , who took over the lease of a purpose-built flat in Brecon in May 1997. The question was if we could estimate the price could be to prolong the lease by an additional years. Similar premises in Brecon with a long lease were valued about £256,600. The mid-range amount of ground rent was £60 billed monthly. The lease terminated in 2078. Taking into account 52 years left we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 plus costs.
In 2009 we were contacted by Mr and Mrs. I James who, having moved into a garden apartment in Brecon in January 2002. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Identical residencies in Brecon with a long lease were in the region of £218,000. The average ground rent payable was £45 billed yearly. The lease ran out in 2089. Considering the 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of legals.