Unfortunately that a Bryn Y Baal residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Bryn Y Baal property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Most leasehold owners in Bryn Y Baal will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Bryn Y Baal with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| Yorkshire Building Society |
The conveyancers 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 lawyer we work with provide it.
Last year Adam, started to get close to the eighty-year mark with the lease on his ground floor apartment in Bryn Y Baal. Having purchased his flat 18 years ago, the lease term was of minimal relevance. Fortunately, he recognised he needed to take action soon on a lease extension. Adam extended the lease just ahead of time in July. Adam and the freeholder via the management company subsequently settled on a premium of £5,000 . If the lease had dipped lower than eighty years, the figure would have gone up by a minimum £1,050.
Last Spring we were e-mailed by Ms U Stewart , who bought a studio flat in Bryn Y Baal in January 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable premises in Bryn Y Baal with a long lease were valued around £264,000. The average amount of ground rent was £60 invoiced per annum. The lease ended in 2079. Given that there were 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 plus professional charges.
In 2012 we were approached by Dr S Bertrand who, having owned a purpose-built apartment in Bryn Y Baal in August 1995. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative residencies in Bryn Y Baal with 100 year plus lease were valued around £225,400. The mid-range ground rent payable was £45 billed quarterly. The lease finished on 17 May 2090. Having 64 years left we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of costs.