The re-sale value of a leasehold property in Brynmawr is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the eighty year threshold. Leasehold Reform legislation enables Brynmawr qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Brynmawr leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the landlord of her one bedroom flat in Brynmawr, Georgia initiated the lease extension process as the eighty year threshold was rapidly approaching. The transaction was finalised in January 2012. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were phoned by Mr and Mrs. O Roberts who, having acquired a basement apartment in Brynmawr in June 2004. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable homes in Brynmawr with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease ended in 2097. Given that there were 71 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
Last Christmas we were phoned by Mrs R Davis , who owned a garden flat in Brynmawr in June 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Brynmawr with a long lease were valued around £254,200. The mid-range ground rent payable was £60 billed yearly. The lease lapsed on 12 August 2077. Given that there were 51 years unexpired we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of fees.