Caerleon leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Caerleon will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Caerleon with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Royal Bank of Scotland |
The conveyancers that we work with undertake Caerleon 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.
Joseph owned a studio apartment in Caerleon being marketed with a lease of just over fifty eight years remaining. Joseph on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Joseph to exercise his statutory right. Joseph procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Winter we were e-mailed by Dr Jackson Alexander , who was assigned a lease of a basement apartment in Caerleon in June 2007. The question was if we could estimate the premium would be for a ninety year lease extension. Similar properties in Caerleon with a long lease were in the region of £174,200. The average ground rent payable was £55 billed annually. The lease ended on 8 August 2077. Taking into account 51 years unexpired we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including professional charges.
In 2013 we were contacted by Dr V Dupont who, having owned a one bedroom flat in Caerleon in March 2004. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative homes in Caerleon with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed monthly. The lease terminated on 16 June 2097. Taking into account 71 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.