The closer a domestic lease in Bryncoch gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in Bryncoch will qualify for this right; that being said a conveyancing solicitor can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Bryncoch,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bryncoch valuers.
Two years ago Reuben, started to get close to the 80-year mark with the lease on his garden flat in Bryncoch. Having bought his property 19 years ago, the unexpired term was of no importance. Thankfully, he recognised he needed to take action soon on Extending the lease. Reuben extended the lease at the eleventh hour in March. Reuben and the freeholder subsequently settled on the final figure of £5,500 . If the lease had descended lower than 80 years, the amount would have escalated by a minimum £1,125.
Mr O Dupont completed a one bedroom flat in Bryncoch in January 2002. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Bryncoch with a long lease were worth £256,600. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed in 2077. Given that there were 52 years left we approximated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including professional charges.
Mr Jack Bernard acquired a purpose-built apartment in Bryncoch in June 2012. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in Bryncoch with a long lease were in the region of £218,000. The average ground rent payable was £45 invoiced quarterly. The lease ended on 22 May 2088. Given that there were 63 years unexpired we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.