When it comes to long leasehold property in Brymbo, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Brymbo with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has less than eighty years left, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Brymbo,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brymbo valuers.
Last Spring Riley, started to get near to the 80-year mark with the lease on his ground floor flat in Brymbo. Having bought his flat 18 years previously, the unexpired term was of little bearing. As luck would have it, he realised he would imminently be paying way over the odds for Extending the lease. Riley extended the lease just under the wire in August. Riley and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the premium would have gone up by at least £1,050.
In 2014 we were e-mailed by Mr and Mrs. V Ricardo who, having took over the lease of a first floor apartment in Brymbo in January 2001. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable flats in Brymbo with a long lease were valued about £260,200. The mid-range ground rent payable was £65 collected annually. The lease ran out on 22 November 2092. Given that there were 66 years remaining we approximated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of expenses.
Mr and Mrs. W Girard purchased a one bedroom flat in Brymbo in February 2011. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparative homes in Brymbo with a long lease were worth £198,800. The mid-range amount of ground rent was £55 billed annually. The lease elapsed in 2081. Considering the 55 years left we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including fees.