Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Brynmawr. Clearly, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Brynmawr have the right to extend the lease for a further 90 years under statute. Do give due attention before putting off your Brynmawr lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Brynmawr leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Luca was the the leasehold owner of a 2 bedroom flat in Brynmawr being sold with a lease of fraction over 61 years unexpired. Luca informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2013 we were phoned by Mr and Mrs. E Hall who, having bought a studio apartment in Brynmawr in May 2006. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative flats in Brynmawr with an extended lease were valued around £235,200. The average ground rent payable was £45 billed monthly. The lease ran out in 2092. Having 66 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
In 2014 we were e-mailed by Mr and Mrs. E Fournier who, having owned a purpose-built apartment in Brynmawr in February 1995. The question was if we could estimate the price would be to prolong the lease by an additional years. Identical premises in Brynmawr with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2103. Considering the 77 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.