The market value of Brynmawr leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than 80 years
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Brynmawr,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brynmawr valuers.
Half a year ago Liam, came seriously close to the 80-year threshold with the lease on his two bedroom flat in Brynmawr. In buying his home two decades ago, the length of the lease was of no importance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Liam arranged for a lease extension just under the wire last May. Liam and the landlord who owned the flat above subsequently settled on sum of £6,000 . If he not met the deadline, the premium would have gone up by at least £925.
Last Spring we were contacted by Mr and Mrs. B Pérez , who was assigned a lease of a purpose-built flat in Brynmawr in July 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical residencies in Brynmawr with 100 year plus lease were worth £220,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease elapsed in 2090. Having 64 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of costs.
In 2009 we were e-mailed by Mr and Mrs. P Anderson who, having acquired a purpose-built flat in Brynmawr in April 2003. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Brynmawr with 100 year plus lease were valued about £270,000. The mid-range ground rent payable was £55 collected yearly. The lease elapsed in 2101. Given that there were 75 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.