With a long leasehold property in Brymbo, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Leasehold owners in Brymbo with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years left, under the relevant Act the freeholder can calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Brymbo can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Brymbo lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Dylan, started to get near to the 80-year mark with the lease on his two bedroom apartment in Brymbo. Having bought his property two decades ago, the length of the lease was of no interest. Luckily, he realised he needed to take action soon on a lease extension. Dylan was able to extend his lease just under the wire in January. Dylan and the landlord ultimately agreed on an amount of £6,000 . If the lease had slid below eighty years, the figure would have escalated by at least £1,150.
In 2014 we were approached by Mr and Mrs. D Robinson who, having completed a first floor apartment in Brymbo in July 2001. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparable residencies in Brymbo with an extended lease were in the region of £218,400. The average amount of ground rent was £60 billed monthly. The lease terminated in 2085. Having 59 years remaining we calculated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including costs.
In 2014 we were called by Mr and Mrs. H Davies who, having was assigned a lease of a one bedroom apartment in Brymbo in April 2007. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative premises in Brymbo with an extended lease were valued about £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease came to a finish on 9 August 2105. Having 79 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.