There is no doubt about it a leasehold property in Brynmill is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. Most flat owners in Brynmill will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Brynmill with over 100 years remaining 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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Brynmill,the lease extension lawyers 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 Brynmill valuers.
After unsuccessful discussions with the landlord of her leasehold apartment in Brynmill, Elizabeth initiated the lease extension process just as her lease was coming close to the crucial 80-year threshold. The legal work was finalised in June 2006. The freeholder’s costs were negotiated to about 700 GBP.
Last Christmas we were approach by Mr Adam Mason , who owned a garden apartment in Brynmill in January 2000. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Brynmill with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease lapsed in 2104. Considering the 78 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.
Last month we were e-mailed by Dr Imogen Reed , who was assigned a lease of a one bedroom apartment in Brynmill in February 2003. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Identical premises in Brynmill with 100 year plus lease were in the region of £186,000. The mid-range ground rent payable was £65 invoiced annually. The lease end date was in 2084. Considering the 58 years remaining we estimated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including expenses.