It’s a harsh truth that a Builth Wells residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Builth Wells property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Most flat owners in Builth Wells will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 landlord in Builth Wells,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 Builth Wells valuers.
Jake was the the leasehold owner of a 2 bedroom flat in Builth Wells being sold with a lease of a little over 72 years left. Jake informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jake to invoke his statutory right. Jake obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Spring we were e-mailed by Mr and Mrs. A Bell , who bought a ground floor flat in Builth Wells in February 2009. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Builth Wells with a long lease were in the region of £290,000. The average amount of ground rent was £45 billed annually. The lease end date was on 1 September 2099. Having 73 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
Ms Jennifer Phillips bought a purpose-built flat in Builth Wells in October 2002. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparative residencies in Builth Wells with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £60 invoiced quarterly. The lease concluded in 2088. Having 62 years left we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including costs.