On the balance of probabilities where you own a flat in Builth Wells you actually own a long leasehold interest over your property
Leasehold properties in Builth Wells with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Builth Wells,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Builth Wells valuers.
Jason was the the leasehold proprietor of a high value apartment in Builth Wells on the market with a lease of a little over fifty eight years left. Jason informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jason to invoke his statutory right. Jason obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Dr E Ward who, having bought a garden apartment in Builth Wells in June 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Builth Wells with a long lease were valued about £200,000. The average amount of ground rent was £50 invoiced per annum. The lease ended on 21 May 2104. Having 78 years as a residual term we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
Last Spring we were e-mailed by Mrs Stephanie Flores , who was assigned a lease of a basement flat in Builth Wells in January 1996. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative flats in Builth Wells with a long lease were valued around £267,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease expired on 25 April 2093. Taking into account 67 years as a residual term we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of costs.