When it comes to domestic leasehold premises in Brynmill, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Leasehold owners in Brynmill with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has below 80 years outstanding, under the relevant legislation the freeholder can calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Brynmill with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Brynmill,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brynmill valuers.
Isaac owned a conversion apartment in Brynmill being marketed with a lease of fraction over 61 years outstanding. Isaac on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr F Bell was assigned a lease of a one bedroom flat in Brynmill in October 1998. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable flats in Brynmill with an extended lease were valued around £245,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease concluded on 18 September 2094. Having 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
Dr Eleanor Laurent bought a recently refurbished flat in Brynmill in October 1998. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Brynmill with a long lease were in the region of £280,000. The average ground rent payable was £55 invoiced every twelve months. The lease lapsed in 2104. Having 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.