Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Builth Wells. Clearly, the period of lease remaining reduces over time. This is often ignored and only becomes a problem when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Builth Wells have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. You should give careful deliberation before putting off your Builth Wells lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold properties in Builth Wells with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
The conveyancers that we work with undertake Builth Wells lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Theo, came dangerously close to the eighty-year mark with the lease on his studio apartment in Builth Wells. In buying his home two decades ago, the length of the lease was of no bearing. Fortunately, he realised he needed to take action soon on Extending the lease. Theo arranged for a lease extension just ahead of time in July. Theo and the freeholder via the management company eventually settled on sum of £6,000 . If he not met the deadline, the premium would have gone up by at least £900.
Last Autumn we were approach by Mr and Mrs. O Young , who bought a studio flat in Builth Wells in July 2000. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable properties in Builth Wells with an extended lease were valued about £275,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease termination date was in 2094. Given that there were 68 years unexpired we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
Dr M Howard completed a purpose-built flat in Builth Wells in August 2008. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical homes in Builth Wells with an extended lease were worth £208,600. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed in 2083. Given that there were 57 years remaining we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including costs.