Brynmawr residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service gives you better control over the value of your Brynmawr leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Seth, started to get near to the 80-year mark with the lease on his ground floor flat in Brynmawr. In buying his home two decades ago, the lease term was of no interest. by good luck, he realised he would imminently be paying way over the odds for a lease extension. Seth was able to extend his lease just under the wire last August. Seth and the freeholder in the end agreed on the final figure of £5,000 . If the lease had dropped to less than 80 years, the premium would have gone up by at least £875.
Dr N François moved into a first floor apartment in Brynmawr in June 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical residencies in Brynmawr with a long lease were worth £250,000. The average ground rent payable was £50 invoiced monthly. The lease terminated on 14 September 2094. Having 69 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
In 2009 we were approached by Mr F Young who, having owned a basement flat in Brynmawr in January 1997. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable flats in Brynmawr with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease finished in 2105. Given that there were 80 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.