Brymbo leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Brymbo will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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 gives you better control over the value of your Brymbo leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a high value apartment in Brymbo being marketed with a lease of just over 61 years left. Lucas on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
In 2010 we were phoned by Dr Matthew González who, having owned a first floor flat in Brymbo in February 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Brymbo with 100 year plus lease were in the region of £233,200. The average ground rent payable was £60 invoiced monthly. The lease elapsed in 2086. Considering the 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus fees.
In 2009 we were phoned by Mr D Watson who, having took over the lease of a one bedroom apartment in Brymbo in October 1999. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable homes in Brymbo with a long lease were in the region of £166,800. The average ground rent payable was £50 collected quarterly. The lease expiry date was on 17 April 2075. Taking into account 50 years outstanding we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus fees.