Bryn Y Baal leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, 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' in addition to the standard 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 Bryn Y Baal will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain cases you may not be entitled. There are also strict timetables and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Bryn Y Baal with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Bryn Y Baal lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Nathan, came very near to the 80-year mark with the lease on his ground floor apartment in Bryn Y Baal. In buying his flat two decades ago, the length of the lease was of little interest. Thankfully, he recognised he needed to take action soon on Extending the lease. Nathan arranged for a lease extension at the eleventh hour last August. Nathan and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If the lease had dipped to less than 80 years, the price would have escalated by at least £950.
Last Summer we were e-mailed by Dr Harry André , who moved into a first floor apartment in Bryn Y Baal in October 2003. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparable homes in Bryn Y Baal with an extended lease were valued around £191,000. The average amount of ground rent was £65 billed yearly. The lease ended in 2084. Having 58 years outstanding we approximated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including professional charges.
Mr and Mrs. Y Hill owned a ground floor flat in Bryn Y Baal in October 2007. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Bryn Y Baal with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded in 2095. Given that there were 69 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.