The market value of Bryncoch leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
Leasehold premises in Bryncoch with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
Irrespective of whether you are a tenant or a freeholder in Bryncoch,the lease extension experts 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 Tyler, came perilously close to the eighty-year mark with the lease on his first floor flat in Bryncoch. In buying his flat two decades ago, the unexpired term was of minimal interest. by good luck, he became aware that he needed to take steps soon on a lease extension. Tyler was able to extend his lease at the eleventh hour in March. Tyler and the freeholder via the management company in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £1,100.
Last Autumn we were phoned by Mr and Mrs. J Parker , who purchased a basement apartment in Bryncoch in August 2011. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative premises in Bryncoch with an extended lease were in the region of £183,600. The average amount of ground rent was £65 billed yearly. The lease lapsed on 18 September 2082. Having 57 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.
Last Winter we were called by Mrs B Howard , who completed a garden apartment in Bryncoch in June 2006. We are asked if we could estimate the price would be for a ninety year lease extension. Identical residencies in Bryncoch with an extended lease were valued about £245,000. The mid-range ground rent payable was £50 invoiced yearly. The lease lapsed in 2093. Considering the 68 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.