Brynmill leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Brynmill will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Brynmill,the lease extension lawyers 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 Brynmill valuers.
Subsequent to lengthy negotiations with the landlord of her leasehold apartment in Brynmill, Erin initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction completed in May 2015. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr Theo Lefebvre , who completed a garden flat in Brynmill in March 1997. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Brynmill with 100 year plus lease were valued around £193,400. The mid-range amount of ground rent was £65 collected annually. The lease came to a finish on 7 August 2084. Having 59 years unexpired we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including legals.
Dr L Kelly moved into a recently refurbished apartment in Brynmill in October 2001. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Identical residencies in Brynmill with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished on 21 April 2095. Considering the 70 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.