Bryncoch leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Flat owners in Bryncoch will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
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 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a landlord in Bryncoch,the lease extension lawyers 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 Bryncoch valuers.
In the wake of 6 months of protracted correspondence with the freeholder of her two bedroom flat in Bryncoch, Georgina initiated the lease extension process as the eighty year mark was rapidly advancing. The transaction completed in July 2014. The landlord’s fees were kept to an absolute minimum.
Last month we were e-mailed by Dr Theo Parker , who was assigned a lease of a ground floor flat in Bryncoch in July 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Bryncoch with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 billed per annum. The lease concluded on 10 May 2089. Considering the 64 years outstanding we estimated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 not including costs.
Last Christmas we were e-mailed by Dr M Miller , who was assigned a lease of a ground floor apartment in Bryncoch in October 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar premises in Bryncoch with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 collected yearly. The lease terminated on 8 November 2100. Given that there were 75 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.